Gas exploration and development is usually carried out under joint venture arrangements in which costs, risks and benefits are shared by a number of companies. Typically, joint venturers seek to market their gas on common terms and conditions, including price, and to guarantee their income stream by long-term sales contracts with gas utilities and other large customers.
Both the initial agreements to coordinate marketing and the subsequent individual sales contracts could breach Trade Practices Act prohibitions against anti-competitive conduct. These potential breaches of the Act may, however, be authorised if the Commission is satisfied that the benefits to the public exceed the anti-competitive costs.
