About Pipeline Capacity Trading (PCT)

Pipeline capacity refers to the right to transport gas through a transmission pipeline. PCT, therefore, allows participants to trade spare pipeline capacity, including firm park services, firm forward haul services and firm compression services.It applies to gas transmission pipeline and compression services (which are jointly referred to as 'transportation services') outside of the Victorian Declared Transmission Service (DTS).

About the market

PCT includes the following features:

  • Capacity Trading Platform (CTP): An online platform that shippers can use to trade secondary capacity ahead of the nomination cut-off time. It provides for exchange-based trading of commonly traded products and a listing service for more-bespoke products. The CTP forms part of the Gas Supply Hub exchange.
  • Day-Ahead Auction (DAA): An auction of contracted but un-nominated capacity. It is conducted after nomination cut-off and is subject to a reserve price of zero. Compressor fuel is provided in-kind by shippers.
  • Standards for key contract terms:By providing standards for key contract terms in primary, secondary and operational transport agreements, we help to make capacity products more fungible. In doing so, we facilitate increased levels of secondary capacity trading.
  • Reporting framework: A reporting framework for secondary capacity trades that provides for the publication of price and other related information on secondary trades. It also provides other market transparency measures, including information relating to allocation agreements.

About the PCT project

Pipeline Capacity Trading was the result of a capacity trading reform package recommended by the Australian Energy Market Commission (AEMC) as part of its East Coast Wholesale Gas Market and Pipelines Framework Review. This package was endorsed by the Council of Australian Governments (COAG) Energy Council at its August 2016 meeting.

Following an extensive program of work, the Capacity Trading Platform and the Day-Ahead Auction went live on 1 March 2019.

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