- BG Group Plc
Market definitionThe ACCC considered the agreement in the context of:
- the market for the production and marketing of wholesale gas in the southern Queensland region connected by pipeline infrastructure (including Brisbane, Gladstone and Mt Isa);
- the market for the production and marketing of wholesale gas in the southern states (NSW, VIC and SA);
- the market for the wholesale generation of electricity in Queensland;
- the market for the retailing of electricity in Queensland; and
- the market for the retailing of gas in Queensland.
Competition analysisOn 14 November 2008, the ACCC formed the view that the agreement would be unlikely to result in a substantial lessening of competition in the relevant markets were AGL to exercise its options under the agreement. Factors informing this conclusion included:
- the relatively limited gas reserves which would be held by AGL and the existence of a number of competitors with significant gas reserves;
- the relatively limited power generation assets which would be held by AGL and the existence of a number of competitors with significant power generation capacity;
- that as a result of AGL's relatively limited position in gas reserves and power generation, AGL would be unlikely to have the ability and incentive to foreclose competition in the retailing of gas and the retailing of electricity in Queensland.
|28/10/2008||ACCC commenced review under the Mergers Review Process Guidelines.|
|12/11/2008||Closing date for submissions from interested parties.|
|14/11/2008||ACCC announced it would not oppose the agreement.|