The competition regulator has released an issues paper for the East Coast Gas Inquiry.

The ACCC’s East Coast Gas Inquiry will look at competition and pricing in the wholesale gas market, and the structure of the upstream, processing, transportation, storage and marketing segments of the gas industry.

The issues paper seeks information and responses on the following factors;

  • Impacts of LNG export gas on gas flows and the domestic gas industry
  • Rising domestic gas prices and changes in non-price terms
  • Negotiation processes
  • Access to essential infrastructure, including gas processing
  • Availability of information
  • Pipeline development and access to capacity

“Since the inquiry commenced on 13 April 2015, the ACCC has been engaging broadly to hear firsthand issues and concerns of participants in the East Coast gas market. Gas users, for example, have suggested that there are difficulties in gaining offers to supply gas, and they feel that this is evidence of a non-competitive market,” ACCC chair Rod Sims said.

“The ACCC is seeking specific examples of conduct, negotiations and market practices that show the operation of the market during this time of transition.

“These could go to issues such as difficulties in obtaining gas, deteriorating non-price terms and conditions, or increases in price.”

The ACCC is seeking specific examples of any situation that may:

  • affect the incentives or ability of parties to supply gas
  • affect the ability or willingness of parties to compete in the provision of a range of services across the gas value chain
  • demonstrate whether the outcomes observed in the domestic gas industry are driven by broader changes in the domestic gas industry, such as rising production costs or export price linkages, or are indicative of an increase in the market power of domestic gas suppliers
  • demonstrate possible anti-competitive conduct.

Further information on the inquiry and the issues paper are available here.