The Wallumbilla Gas Supply Hub is due to go live on 20 March 2014. The establishment of the Hub is a significant step in Australia’s gas market reform which is aimed at increasing transparency, competition and reliability of supply.
The benefits of the Hub include :
- enhancing transparency of gas trading
- strengthening participants’ short term ability to allocate and price gas efficiently
- setting a reference prince that would support the evolution of financial products to manage portfolio risk
- providing a generic and flexible national framework for a supply hub that can evolve with industry needs and be applied at any location through the introduction of a new product at a new location, and
- supporting the efficient trade and movement of gas between regions.
It is anticipated that other services or products will be developed following the introduction of the Hub. Such services could include trading in pipeline capacity, potential trading on a quarterly basis, derivative products and expanding hubs into other regions to enable the offsetting of trades in one region with gas trades in another region.
Market trials will run from 24 February through until 14 March.