Late yesterday, the Minister for Industry, Trade and Resources, The Hon. Ian Macfarlane MP, announced his decision (the Decision) regarding regulatory coverage of the Moomba to Sydney Pipeline System (MSP).
From our preliminary reading, our observations are that the Decision: -
• Recognises that competition exists in the transmission of natural gas into the markets of New South Wales and the Australian Capital Territory;
• Revokes regulatory coverage over most of the MSP, which competes to deliver gas into those markets, and
• States that pipelines which deliver gas to regional areas of New South Wales and the Australian Capital Territory, do have some monopoly characteristics and regulatory coverage of those areas is appropriate for the present.
Australian Pipeline Trust (APA) welcomes the Minister’s Decision to revoke coverage of gas transmission into New South Wales. Because it is likely that the Decision will have no negative financial impact on APA, it will be reserving its position on whether to appeal the Decision in relation to the balance of the MSP system. These remaining pipelines which service Sydney, the Australian Capital Territory and regional areas of New South Wales may now be considered a regional trunk system.