The Australian Competition and Consumer Commission (ACCC) has released a draft determination proposing to authorise joint gas marketing arrangements between Central Petroleum (ASX: CTP) and Macquarie Mereenie.
Central and Macquarie are joint venture partners at the Mereenie oil and gas field, which is located in the Amadeus Basin in the Northern Territory, approximately 250 km west of Alice Springs.
Nicole Ross, General Manager ACCC Gas Inquiry Unit, delivered the speech on the ACCC Chairman's behalf due to an unavoidable scheduling conflict. The speech outlines what the ACCC is doing to help bring about a more competitive east coast gas market.
Australia’s east coast gas market remains incredibly tight and users are paying for this with high prices and limited sources of competing supply.
The east coast gas market is at a crossroads and the only real choice is to address the fundamental supply problem, particularly in the south.
The supply situation is most stark in the case of the southern part of the east coast, with the ACCC’s gas inquiry finding that there is not enough production forecast in the southern states to meet southern demand in 2018.
In his annual CEDA address, Chairman Rod Sims launched the ACCC's 2018 Compliance and Enforcement policy. This year, the ACCC will focus on consumer issues in broadband services and energy, competition in the financial services and commercial construction sectors, systemic consumer guarantee issues, and conduct that may contravene the new misuse of market power and concerted practices provisions.
The ACCC has released its second interim report as part of its inquiry into Australia’s wholesale gas supply arrangements.
The ACCC Gas Inquiry 2017-20 Interim Report – December 2017 follows the ACCC’s September report on the East Coast Gas Market, which found that a substantial shortfall was likely in 2018.
The ACCC released its preliminary report on 16 October 2017. Submissions to the preliminary report closed on 17 November 2017.