Policy success in further developing our gas markets and addressing transitional pressures should produce:
- more competitive and efficient gas markets with:
- greater trading flexibility, including through the development of an upstream trading facility in the eastern market and the development of a short-term trading market in the west
- improved transparency, including on price discovery, supply-demand balances and pipeline capacities
- increased market liquidity, including in secondary markets
- adequate supply to meet current and projected domestic and export needs
- efficient interactions with electricity markets
- a more interconnected and extensive gas pipeline network driven by efficient and timely investment signals
- an investment schedule in gas development, processing and transmission pipeline and distribution infrastructure that can meet projected demand in all three geographical markets.
Gas market policy actions
The Australian Government will promote more efficient gas markets by working through the SCER’s gas market reform program to:
- develop options for the development of a national gas supply hub trading model, to enhance transparency and reliability of supply and support a gradual evolution towards a liquid gas commodity market
- further consider the merits of reviewing pipeline capacity trading, including potential mechanisms for utilising unused (but contracted) capacity.
In addition, the government will:
- work with industry to identify additional market information and potential collection and reporting mechanisms that could address areas of information asymmetry and promote the development of more robust gas market arrangements and outcomes
- engage with industry to develop a shared long-term vision for Australia’s key gas markets as a framework for guiding near-term market reform directions.
The Australian Government will work with other jurisdictions and industry to address emerging transitional pressures by:
- maintaining open and well-functioning gas market arrangements to encourage the timely and efficient supply of gas at competitive market prices
- addressing regulatory and other impediments to the timely development of our gas resources, particularly new CSG and shale gas resources
- ensuring timely commercial development of Commonwealth offshore gas resources, including through updated Commonwealth retention and development approval conditions, as described in Chapter 5: Energy resources
- exploring options to promote increased liquidity in gas markets
- closely monitoring developments in Australian gas markets, particularly projected supply-demand balances, and the emergence of potential impediments to adequate domestic supply.