Gas Supply Hub Proposed Exchange Agreement Amendment

Notice to Gas Supply Hub Members of AEMO’s decision Gas Supply Hub Exchange Agreement Amendments – GLNG Proposal

AEMO has completed its consultation on the GLNG Proposal.

AEMO has decided to amend the Exchange Agreement as set out in the document below. The amendments are similar to those published with the IIR, with some minor corrections and changes to add clarity.

In accordance with clause 3.3(d)(iv) of the Exchange Agreement, AEMO informs Members that these amendments will be incorporated in version 3.0 of the Gas Supply Exchange Agreement, effective from Monday 27th April 2015.

Gas Supply Hub Proposed Exchange Agreement Amendment - Extension of Time

Notice of Extension of Time to Publish Decision
AEMO gives notice of an extension of time for it to publish a decision with regard to proposed changes to the Gas Supply Hub Exchange Agreement (EA) under clause 3.5 of the EA. .
The date for publication of the decision on amendments to the EA detailed in an Impact and Implementation Report (GSH IIR 001) (IIR), published on 20 November 2014, is extended from 20 January 2015 to 31 March 2015.

This notice of extension is dated 16 January 2015.

Reasons for the Extension of Time

This notice refers to changes to the EA, proposed by GLNG, to allow unincorporated joint ventures to participate in the GSH exchange as a single GSH member or through an agent.  Notice of consultation on the proposed changes was published, together with the IIR, on 20 November 2014. Consultation was undertaken under clause 3.3 of the EA, with the closing date for submissions being18 December 2014.

In accordance with clause 3.3(d) of the EA, the Operator is required to publish its decision within 20 business days from the closing date for submissions.  In this case, the due date is 20 January 2015.

AEMO has received a written request from GLNG, the proponent, to extend the time for publication of the decision to 31 March 2015, to allow the GLNG Joint Venture participants adequate time to consider the application of the modified version of GLNG’s second alternate proposal, as recommended by AEMO in section 10 of the IIR.

AEMO considers that this request from the proponent justifies an extension of time in accordance with the provisions of clause 3.5 of the EA, as AEMO’s recommended modifications represent a material change for the proponent. Without confirmation of the proponent’s views on the recommended approach, AEMO is not in a position to decide whether or not to amend the EA, given that the proposed changes directly concern the manner of GLNG’s potential participation in the Gas Supply Hub.

The extension of time for the decision will have no material impact on other participants or the operation of the GSH.

Gas Supply Hub Proposed Exchange Agreement Amendment

Notice of Consultation

AEMO gives notice of consultation on proposed changes to the Gas Supply Hub Exchange Agreement (EA) under clause 3.3 of the EA. .

This notice of consultation is dated 20 November 2014.

Proposed EA changes

The proposed amendment of Exchange Agreement and related GSH documentation is to allow for:

• a single Member to comprise multiple persons in a structure such as an unincorporated joint venture;
• the participation and liability of each of them to be limited to a percentage interest as specified in the Membership Agreement;
• the ability of each of them to transfer or assign its GSH membership interest, in whole or part, on notice to the Operator without prior approval.

AEMO has published an Impact and Implementation Report (IIR) below, which details the proposed changes to the EA. Also published is a change marked version of the EA.

Gas Supply Hub Registered Participants and other interested parties are invited to submit comments on the proposed changes and the Impact and Implementation Report to AEMO by 5pm, Thursday 18 December 2014 via email to: Hub_Reference@aemo.com.au