Promoting Free and Fair Trade in Gas

K Peter KolfExecutive Director

Office of Gas Access Regulation WA

Energy Regulation and the Role of the Regulators Conference

Novotel Melbourne on Collins1 May 2001

Overview• Natural Gas Markets in WA• Free and Fair Trade in Natural Gas• The Office of Gas Access Regulation• The Gas Access Regime• Objectives in Western Australia• Outcomes

Domestic Gas SuppliesTJ/d

1997 2000

North West Shelf 428 451 Harriet Pipeline System 119 191 Tubridgi Pipeline System 50 37 Perth Basin Gas 44 29 Total 641 708

Domestic Gas TransmissionTJ/d

1997 2000

DBNGP 534 596 Goldfields Gas Pipeline 63 83 Parmelia Pipeline 44 29 Total 641 708

Pe rth

G e ra ld to n

C a rna rvo n

Bunb ury

Busse lto nC a p e l Alb a ny

Ka m b a ld a

Ka lg o o rlie

Ne wm a n

Po rt He d la nd

Pa rm e lia Pip e line

G e ra ld to n La te ra l

Tub rid g i & G riffin Pip e line s

Ha rrie t Pip e line s

No rth We st She lf Pip e line

Pilb a ra Ene rg y Pro je c tG a s Pip e line (PEPL)

Ne wm a n La te ra l

G o ld fie ld s G a sPip e line (G G P)

C a rna rvo n La te ral

C a p e La m b e rt Pip e line

Ka m b a ld a La te ra l

NA TURAL G A S PIPELINES W e s t e rn A u s t ra l ia

Da m p ie rG rif fin O ffsho re Pip e line

The ve na rd Isla nd Pip e line

M a nd ura h

Da m p ie r to Bunb uryNa tura l G a s Pip e line (DBNG P)

M id We st Pip e line

W in d im u rr a

Pip e line s C o ve re d b y C o d e

O ffsho re Ra w G a s Pip e line s No Distrib utio n Syste m s

Pip e line s No t C o ve re d b y C o d e No t C o ve re d G a s Distrib utio n Syste m s

C o ve re d G a s D istrib utio n Syste m s

Pipeline Date Lodged Status AlintaGas Distribution System

30 June 1999 Final Approval 18 July 2000

Parmelia Pipeline 7 May 1999 Final Approval 15 December 2000

Tubridgi Pipeline System

21 Oct 1999 Draft Decision 7 August 2000

Goldfields Gas Pipeline 15 Dec 1999 Draft Decision 10 April 2001

Dampier to Bunbury Natural Gas Pipeline

15 Dec 1999 Draft Decision Expected May 2001

Kambalda Lateral

Deferred Extension granted to 1 Dec 2002

Independent Gas Pipelines

Access Regulator Gas Disputes Arbitrator

Executive Director

Senior Business Analyst

Receptionist Executive Officer

Personal Assistant

Senior Business Analyst

Gas Review Board

Gas Access Regulation in WA

Industry Funded

• Funded by “Covered” Pipelines– Service Charges for Direct Services– Standing Charge for Indirect Services

Approach in Western Australia• Focus is on Access• Independence of the Regulator• Transparency• Open Door Policy• Consultation

Outcomes for WA

• Commercial Markets for Natural Gas• Competitive Local Gas Supply Market• Competitive Gas Pipeline Market• Increasingly Competitive Gas Distribution• Increasingly Competitive Gas Prices

Concluding CommentMain focus is:• Promote Competition;• Encourage Investment;• Provide Value to Users; and • Ensure Reasonable Return to Owners.

Promoting Free and Fair Trade in Gas

K Peter KolfExecutive Director

Office of Gas Access Regulation WA

Energy Regulation and the Role of the Regulators Conference

Novotel Melbourne on Collins1 May 2001