A draft decision from the Australian Energy Regulator bodes well for the future of APA Group’s South West Queensland Pipeline.
The South West Queensland Pipeline (SWQP) will link Wallumbilla in Queensland to Moomba in South Australia, forming a critical link in the gas supply chain between Australia’s northern and southern regions. In particular, the pipeline is expected to help ease gas demands in NSW and Victoria.
But in May, APA announced plans to delay expansion of the SWQP amid regulatory uncertainty, which threatened to subject the pipeline to heavier price regulation. This was expected to stymie investment and drive up end-user costs.
To the relief of the gas industry, the Australian Energy Regulator (AER) delivered a draft decision this week, stipulating that the SWQP should remain subject to existing and lighter-handed regulation.
The AER decision is preliminary with further consultation and submissions to be received from APA and other stakeholders before a final decision is made.
“APA welcomes the AER’s draft decision to maintain the current form of regulation for the SWQP,” APA Group CEO Adam Watson said.
“This decision, if confirmed, creates confidence to make the necessary investment in our east coast gas grid to support energy security for our customers and consumers.
“It will also help facilitate our nation’s ambition to deliver a reliable, affordable and lower emissions energy system.”
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