The EUAA recently presented at the Grattan Institute Energy Futures Forum to discuss Inquiry into the East Coast Gas Market, the ACCC report published in April 2016.
The main points expressed during our presentation:
- The EUAA congratulated the ACCC on acknowledging and recognising the immense problems faced by gas users in Eastern Australia, and addressing the core issue of the lack of competition. We recorded that EUAA has been highlighting these issues for over 5 years!
- We validated the ACCC’s description of the ‘triple whammy’- three LNG projects developed at the same time has removed 50 years worth of supply to the domestic market, and that which is available is exceedingly expensive.
- Monopoly pipeline pricing creates market inefficiencies- a barrier to investment in new upstream gas supply and restriction of gas sourcing options for users.
- The EUAA supports the review and breaking down of the Gippsland Basin JV joint marketing arrangements.
- We support increased data transparency on both sides of the negotiating table to eliminate the information asymmetry between sellers and buyers that disadvantages the latter.
A full transcript of EUAA’s paper by Mark Grenning, as well as a recording of the seminar including comments from Rod Sims and other speakers can be found via the link below: