Need for continued pipeline investment: APGA

“The ACCC’s commentary on gas transportation focuses on contractual congestion, gas swaps and short-term services,” said Australian Pipelines and Gas Association (APGA) CEO Steve Davies.

APGA CEO Steve Davies.


“Addressing these issues will help improve liquidity and competition in the market and APGA supports the reforms underway to do so.”

“Capacity trading, gas swaps and short-term services can all help increase liquidity and competition, but can do little to increase the amount of gas delivered on peak days.

“It is the peak demand delivery capacity of a gas transmission pipeline that determines how much gas demand can be supported by a pipeline and is of most relevance to the markets it serves.

“All stakeholders want meaningful new volumes of gas to enter the market; that means producers and users will need to work with pipeline operators to reach commercial agreements to expand existing pipelines or build new pipelines, depending on where the gas is coming from.”

The Gas Inquiry 2017-20 Interim Report – December 2017 report is available here.

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