On the infrastructure side, most market participants are not willing to enter into long-term agreements on the development of pipelines for major transmission pipelines. In addition, despite the growing importance of storage on the market, investment in additional storage capacity on the East Coast has been limited. In October 2017, when the ACCC highlighted this, the Australian government reached an agreement with LNG producers. As part of this agreement, LNG producers have committed to providing sufficient gas to the domestic market on competitive terms. "There is more and more work to be done to ensure adequate supply of domestic producers and affordable gas, which is why we support the extension of the federal agreement with LNG producers," said James Simonian, executive director of NSW-based gas wholesaler Weston Energy. Australia Pacific LNG and the QCLNG project have reached a long-term agreement on infrastructure sharing, the Australia Pacific LNG... "We have seen significant price decreases [in contract prices] in establishing the initial agreements. We want the same thing to happen this time," he said. The report anticipates that any changes to the TMSO will be developed in consultation with industry and other stakeholders to avoid unintended consequences. In a narrow market, access to competitive capacity for large pipelines has become essential to ensure that gas can be moved freely where it is most needed. Another priority of the ACCC is therefore the progress of pipeline reforms, many of which have been implemented in response to the results of our latest study. APPEA also said that the best solution would be to develop onshore gas fields like the Santos Narrabri project. This was supported by Shadow Resources Minister Joel Fitzgibbon.
In October 2018, at the request of gas users, the ACCC began publishing netback LNG prices on its website to help users identify netback LNG price trends and estimate an indicative gas reference price for supply in the near future. "We need more gas to be supplied by different suppliers," said Andrew Richards, managing director of the Energy Users Association of Australia. Second, the data show that netback LNG prices are volatile and can vary very sharply in the short term. And yet, today, we are faced with these questions. More supply and a greater variety of suppliers are needed in the south to bring down domestic gas prices. The greatest price benefits for domestic gas consumers are obtained when cheaper additional gases are produced in the south, instead of transporting it out of Queensland, the Northern Territory, or importing it via an LNG import terminal. The recent rapid escalation in energy costs has made Australia`s east coast an increasingly unattractive investment offering. These reforms are twofold.
First, a new framework for disclosure and reconciliation was put in place on 1 August 2017. The objective is to limit the exercise of market power by pipeline operators that were not previously regulated. The federal government should now work with affected producers and exporters to implement the changes to the ADGSM recommended by the review.