The Australian Competition and Consumer Commission today issued its draft decision on the Dawson Valley pipeline access arrangement.
"Anglo Coal submitted its proposed access arrangement to the ACCC in February 2007 after the Minister for Industry, Tourism and Resources decided that the Dawson Valley pipeline should be regulated under the gas code," Australian Energy Regulator* Chairman, Mr Steve Edwell, said.
"The Dawson Valley pipeline is a small pipeline that transports coal seam methane from fields in the Dawson Valley in central Queensland to the Wallumbilla to Gladstone via Rockhampton pipeline.
"While only its owners, Anglo Coal and Mitsui, currently ship gas on this pipeline, other coal seam methane producers may in future seek access. The access arrangement will set out the terms and conditions on which Anglo Coal will make third party access available.
"The ACCC's draft decision proposes that a number of amendments be made to Anglo Coal's access arrangement in order for it to be approved. The ACCC was concerned that Anglo Coal overstated its non-capital costs, resulting in a tariff level that might deter development of competing coal seam methane fields in the Dawson Valley.
"The changes proposed by the ACCC will result in a reduction in the tariff proposed by Anglo Coal from $0.406/GJ to $0.306/GJ."
The ACCC invites written submissions in response to its draft decision by 8 June 2007. The draft decision will be available on the AER website. The ACCC will take into consideration issues raised in submissions before issuing its final decision.