Wednesday, 1 June 2016
The Australian Energy Market Operator (AEMO) has today announced the launch of the newly established Moomba Gas Supply Hub and two additional trading locations at the Moomba to Adelaide pipeline and the Moomba to Sydney pipeline, which are now open for trading.
The Moomba Gas Supply Hub follows the successful introduction of the Wallumbilla Gas Supply Hub (GSH), established in 2014 to enhance the transparency and reliability of gas supply by creating a voluntary market that offers a low-cost, flexible method to buy and sell gas at interconnecting transmission pipelines.
The GSH is an exchange for the wholesale trading of natural gas. It allows participants to place anonymous offers or bids on a specified quantity of gas, at a specified price, which can then be automatically matched on the exchange to form transactions.
According to Managing Director and Chief Executive Officer Matt Zema, “the establishment of the Moomba Gas Supply Hub stemmed from the request of a number of large users in New South Wales and South Australia to consider the feasibility of this trading location.
“Following a detailed feasibility study and close consultation with the industry and governments, we are pleased to announce the Moomba Gas Supply Hub is open for trading”.
The Moomba trading location uses the same trading platform, settlement systems, and is subject to the same regulatory framework as the three Wallumbilla trading locations.
“Participants will have increased accessibility to trade between the southern markets and the liquefied natural gas Queensland market, opening up greater market access to new participants, and smaller producers, large users and retailers in South Australia and New South Wales”, said Mr Zema.
The trading locations at Moomba will also support innovation and development of gas services at Moomba, such as storage and title transfer services.
AEMO held regular meetings with industry throughout this process and would like to commend all those involved.