The Australian Pipelines and Gas Association (APGA) welcomes the draft decision from the Australian Energy Regulator (AER) to maintain the non-scheme regulatory arrangement for the South-West Queensland Pipeline.
The SWQP is one of Australia’s most critical energy infrastructure assets, and is the only pipeline that connects gas in Queensland and the NT to demand centres into Victoria and NSW. By upholding the nonscheme regulatory framework, the AER recognises the importance of maintaining a system that allows for
flexible, market-driven pricing and access arrangements, which encourage efficient investments.
Throughout June and July, the South-West Queensland Pipeline operated at an average utilisation rate of 87%. Without the critical capacity expansions in 2020 and 2022, utilisation would have spiked to 111%, highlighting the vital role these upgrades played in ensuring reliable gas supply to southern states during periods of localised shortfalls or increased gas-powered generation (GPG) due to renewable energy lulls.
APGA chief executive Steve Davies says today’s draft decision will help reinvigorate investor appetite in new transmission infrastructure.
“We welcome the decision to maintain flexible and efficient regulatory frameworks,” Mr Davies said.
"Expanding transmission capacity strengthens the domestic gas sector's and AEMO's ability to respond to volatile gas supply shortfalls, especially during periods of peak demand or renewable energy lulls."
About
The Australian Pipelines and Gas Association (APGA) represents the owners, operators, designers, constructors, and service providers of Australia’s pipeline infrastructure, connecting natural and renewable gas production to demand centres in cities and other locations across Australia. Our members offer a wide range of services to gas users, retailers and producers and ensure the safe and reliable delivery of 28 per cent of the end-use energy consumed in Australia.
Contact
For further information or the opportunity to engage with Mr Steve Davies please contact:
Paul Purcell
Head of Corporate Affairs
0422 247 750
ppurcell@apga.org.au