Tribunal sets a value for the Moomba to Sydney pipeline

The Australian Competition Tribunal today handed down its decision on the regulatory value of the Moomba to Sydney pipeline system.

Last July the tribunal rejected the competing methodologies for valuing the pipeline proposed by the ACCC and by the pipeline owner, East Australian Pipeline Limited. 

Instead, the tribunal determined that the value of the pipeline should be calculated using the difference in the present value of the future costs of operating the existing pipeline and an optimised alternative pipeline.

The tribunal has now determined a value for the MSP of $834.66 million using this methodology. The tariff to be applied to regulated gas haulage services will be set following further submissions to the tribunal.

The tribunal's earlier decision on methodology is already the subject of an application by the ACCC for review by the Federal Court. It is expected that the Federal Court will hear the matter later this year.

Background

Moomba to Sydney Pipeline is owned by Eastern Australian Pipeline Limited (not a listed company) which is a subsidiary of Australian Pipeline Trust (a listed company ASX code APA).