On 17 July 2020 the AEMC published a final report for the 2020 biennial review into liquidity in wholesale and gas pipeline trading markets. 

The final report assesses liquidity using the quantitative and qualitative metrics set out in the review’s scoping paper. Quantitative and qualitative metrics are presented for each of the east coast facilitated gas and pipeline capacity markets, with additional qualitative assessment of bilateral contracting markets, and gas markets in Western Australia and the Northern Territory.

Overall the Commission finds that progress is being made towards increased liquidity that can contribute to achieving the COAG Energy Council’s gas market vision, which is for  

“…the establishment of a liquid wholesale gas market… where an efficient reference price is established… that enables participants the opportunity to readily trade between locations and arbitrage trading opportunities.” 

Consultation process

On 30 January 2020 the AEMC published a scoping paper for the 2020 biennial review into liquidity in wholesale and gas pipeline trading markets. 

The scoping paper outlined the approach the Commission would use to assess liquidity in the gas markets to be evaluated.

The Commission received three submissions and they can be found below. 

On 16 April 2020 the AEMC published a draft report with its key findings. The Commission received five submissions, which are also available below.

Background

On 20 December 2017 the Council of Australian Governments Energy Council (the COAG Energy Council) provided the AEMC with terms of reference to conduct a biennial review into the growth in liquidity in the wholesale gas and pipeline capacity trading markets. 

Broadly, the terms of reference require the AEMC to:

• monitor changes in liquidity in wholesale gas and pipeline capacity markets
• report on the effectiveness of reforms
• identify the need for any further reforms, if appropriate.