Gas industry lobby group the Australian Pipelines and Gas Association (APGA) had cautiously welcomed the report of independent reviewer Dr Michael Vertigan and its proposals on aspects of transmission pipeline capacity negotiations.

APGA Chief Executive, Cheryl Cartwright, said Dr Vertigan has led a deep and thorough review of recommendations made in the Australian Competition and Consumer Commission’s Inquiry into the East Coast Gas Market.

“Dr Vertigan’s report rejects the proposal for a blanket increase in pipeline regulation in favour of a program that would provide increased information and commercial dispute resolution to complement the existing regulatory arrangements,” Ms Cartwright said.

“The pipeline industry accepts these recommendations will improve negotiated outcomes in gas transportation.

“While this program will directly address the concerns raised by various stakeholders during the ACCC inquiry, it must be clearly understood by everyone that it does nothing to address the central problem in the market which is the lack of availability of natural gas. Until policy-makers focus on developing and implementing solutions that will increase the supply of gas, the imbalance in the market will remain.


APGA’s Cheryl Cartwright.