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Reforming the Eastern Australian gas market

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  • Xunpeng (Roc) Shi and R. Quentin Grafton

Abstract

We analyse the deficiencies behind the Eastern Australian gas market by applying a framework proposed by the International Energy Agency. We show that this gas market has structural weaknesses that include inadequate supplies at hubs; limited pipeline capacity; predominance of long†term gas supply contracts; deficiencies in design; and difficulties with third party access. We provide five policy actions to help remedy these deficiencies and to help establish a functional gas market. Although our study is limited to Australia, it, nevertheless, provides insights for countries in the Asia Pacific region, which may wish to move towards more competitive gas markets, including trading hubs.

Suggested Citation

  • Xunpeng (Roc) Shi and R. Quentin Grafton, 2018. "Reforming the Eastern Australian gas market," Asia and the Pacific Policy Studies 201845, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:appswp:201845
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    File URL: https://onlinelibrary.wiley.com/doi/10.1002/app5.244
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    References listed on IDEAS

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    1. Paul Simshauser & Tim Nelson, 2015. "The Australian east coast gas supply cliff," Economic Analysis and Policy, Elsevier, vol. 45(c), pages 69-88.
    2. Shi, Xunpeng & Padinjare Variam, Hari Malamakkavu, 2016. "Gas and LNG trading hubs, hub indexation and destination flexibility in East Asia," Energy Policy, Elsevier, vol. 96(C), pages 587-596.
    3. Malcolm Abbott & Xiaoying Ma, 2017. "Economic Regulation in Australia: The Case of the New South Wales Gas," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 250-265, September.
    4. Hay, James L., 2009. "Challenges to liberalism: The case of Australian energy policy," Resources Policy, Elsevier, vol. 34(3), pages 142-149, September.
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    Keywords

    competition; hub; LNG; market regulation; prices;
    All these keywords.

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