Pipeline Capacity Trading: Allocation Arrangements Discussion Paper

Rod Johannessen, Principal Consultant of Oakley Greenwood is the Commercial Adviser to the Gas Market Reform Group (GMRG) on the gas transmission sector.  The GMRG was established by the COAG Energy Council in August 2016 to lead the design, development and implementation of a number of reforms relating to gas pipelines.  These include a pipeline capacity trading platform and a day ahead auction of contracted but un-nominated capacity, which will be implemented by 1 March 2019.  Allocation rules are applied by pipeline companies to allocate gas transported on pipelines to the pipeline customer’s accounts.  Rod has been retained by the GMRG to carry out an independent review of whether allocation rules, are acting (or are likely to act) as a barrier to capacity trading in the east coast.  A discussion paper prepared by Rod can be found on the COAG Energy Council website here.

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