Pipeline Capacity Trading
Pipeline Capacity Trading
The capacity trading reform package was recommended by the Australian Energy Market Commission (AEMC) as part of its Eastern Australian Wholesale Gas Market and Pipelines Framework Review and endorsed by the Energy Council at its August 2016 meeting. The reforms, which relate to transmission pipeline and compression services (jointly referred to as ‘transportation services’) outside the Victorian DTS, include the development of:
- a capacity trading platform (CTP) that shippers can use to trade secondary capacity ahead of the nomination cut-off time and provides for exchange-based trading of commonly traded products and a listing service for other more bespoke products;
- a day-ahead auction (DAA) of contracted but un-nominated capacity, which would be conducted shortly after nomination cut-off and subject to a reserve price of zero (with compressor fuel provided in-kind by shippers);
- standards for key contract terms in primary, secondary and operational transportation agreements to make capacity products more fungible and, in so doing, facilitate a greater level of secondary capacity trading; and
- a reporting framework for secondary capacity trades that provides for the publication of the price and other related information on secondary trades, as well as other market transparency measures including information relating to allocation agreements.
Both the Capacity Trading Platform and Day-Ahead Auction market are required to go live at the beginning of March 2019.
Navigating the Pipeline Capacity Trading program page
The Pipeline Capacity Trading Project requires significant interaction with industry, spanning a range of policy, business and technical topics. This interaction takes place through a range of industry groups and other governance forums, which facilitate communication, consultation and coordination.
The below components present the relationship between the joint implementation project and its stakeholders.
Design and Legal
Design and Legal involves consultation and amendments to laws and rules, maintaining linkages between the Law, Regulations and Detailed Design to ensure consistency of arrangements across the project. It will also assess regulatory implications of the proposed settlement arrangements for the DAA.
AEMO will be responsible for the implementation of market systems to support the operation of the CTP and the DAA. AEMO will produce function requirements, an IT solution, detailed design, user guides and other technical specifications for the market systems.
- Release Schedule - March 2019 - Pipeline Capacity Trading
- Guide to AEMO's e-Hub APIs
Industry Readiness encompasses testing, market trials, cutover, pre and post go-live operations, budget and market fees.
- Market Readiness Report - February 2019 (220 KB, pdf)
- Market Readiness Report - November 2018 (212 KB, pdf)
- Market Readiness Report - October 2018 (32 KB, pdf)
- Market Readiness Report - September 2018 (210 KB, pdf)
- Market Readiness Report - August 2018 (365 KB, pdf)
The Preliminary Consultation can be found in the Consultations section: Capacity Trading and Auction Documents – Preliminary Drafts.
PCT Reference Group
View the Meeting Papers and Notes for the Pipeline Capacity Trading Reference Group.
Please direct any queries regarding the Pipeline Capacity Trading (PCT) Working Groups to firstname.lastname@example.org