SEA gas is committed to an Open Access Policy that ensures that prospective customers can access services on the SEA Gas pipeline system in a fair, efficient, confidential and timely manner.
The main elements of that policy are:
SEA Gas intends to offer competitively priced Open Access to services on the SEA Gas pipeline system. The quantum of services that SEA Gas is able to offer will vary from time to time depending on existing contract commitments. SEA Gas will maintain a registry of Current Offers on this website showing indicative quantities, prices and terms for the services available at any point in time.
SEA Gas also intends tofacilitate the trading of existing contracted capacity by providing a forum on this website where potential buyers and sellers of traded capacity can advertise their offerings. Click on Capacity Trading to access this facility.
If at anytime the demand for SEA Gas pipeline services exceeds the then currently available uncontracted or tradable capacity, SEA Gas will employ a "first come first served" approach to allocate the available capacity.
If there is no spare uncontracted capacity, SEA Gas will inquire of existing customers whether an opportunity for trade exists and advise a potential customer accordingly.
If there is no spare uncontracted capacity and no trading opportunity exists, a potential customer can discuss expansion of the capacity of the SEA Gas pipeline directly and confidentially with SEA Gas. Click on Tailor Your Request.
Where two or more parties have committed to common expansion studies and any part of those studies occurs simultaneously, SEA Gas will employ a "First come first served" approach in allocating resources and responding to customer applications.
As with all requests for service, SEA Gas expects the customer will seek to address and discuss opportunities within a reasonable timeframe.
SEA Gas recognises that the capacity and scope of the uncontracted or tradable pipeline services that are available at any time may be unable to satisfy a potential customer’s needs. SEA Gas therefore will consider requests to expand the pipeline system subject to:
SEA Gas’ consideration of any requests for expansion of the existing pipeline system will be subject to completion of a Confidentiality Agreement and the Pipeline Service Request Form. Some fees may be applicable and this is set out in Access Applications.
SEA Gas is an independent pipeline operating entity and will conduct negotiations with its customers on a strictly confidential and ring fenced basis, with particular regard to protecting the commercial interests of potential customers in markets upstream or downstream of the pipeline system.
SEA Gas Directors and Owners are only presented with the details of Access Applications when a Term Sheet is signed. All negotiations prior to presentation of a Term Sheet, including the completion of the "Pipeline Service Request Form" included on this website, are handled exclusively by direct employees of SEA Gas, overseen by the independent SEA Gas General Manager.
In signing a Term Sheet, the SEA Gas General Manager will not bind SEA Gas to commit to the expansion, but will bind SEA Gas to negotiate in good faith to translate the Term Sheet into a Contract on substantially the same terms, and to seek funding for the expansion thereof.
When completing a Term Sheet, customers should be mindful of considerations that include:
Associate companies of the SEA Gas owners may seek services on the pipeline at some future time. SEA Gas undertakes to treat these parties no more or less favourably than any other customer.
In order to determine the price for a service offering or tailored request for service, SEA Gas will consider capital and establishment costs, non-capital and operational costs, term, rate of return, and inflation.
The rate of return used in determining Tariffs provides a return that is commensurate with conditions in the market for funds and the risks involved in delivering the Service.
With regards to expansions and extensions of the Pipeline System, SEA Gas requires that construction of facilities shall be in accordance with Pipeline Industry practice in Australia and in particular that SEA Gas:
constructs take-off points and any expansion of the Pipeline System,
approves facility designs, and
owns and maintains delivery points, metering facilities and any pipework or equipment upstream of these facilities.