Q: How can third parties be confident they can negotiate access to the SEA Gas pipeline network on reasonable (and confidential) terms?
A: SEA Gas is interested in growing its business and will advertise any available capacity on this website. SEA Gas understands the confidentiality concern that its customers may have and deals with this matter very strictly.
SEA Gas has been established as an independent operating company, bound by Confidentiality / Ring-fencing and Associate Company Policies. These policies can be found on this website and deal explicitly with "associates" of the SEA Gas partners, and ensure that all parties will be dealt with equally and fairly.
The prices that will be offered for gas transportation on the SEA Gas pipeline network will be consistent with the National Gas Legislation as it relates to Natural Gas Pipelines, and are expected to be competitive with those offered on the Moomba to Adelaide Pipeline (MAP).
Q: Why isn’t the SEA Gas pipeline regulated?
A: SEA Gas is not regulated because it conforms with the National Gas Legislation whereby it openly competes with the MAP. SEA Gas does not satisfy the criteria for covered pipelines. Regulation would be an expensive and unnecessary encumbrance on SEA Gas and its customers.
Q: Why is there no firm capacity available in the pipeline system available to purchase?
A: The SEA Gas pipeline system was built to ensure the security of supply of gas to the South East Australian market. The Foundation Shippers purchased all of the capacity available at the time under long term contracts. SEA Gas would be pleased to discuss expansion of capacity at any time.
Q: Why aren’t the Foundation Shipper Agreements subject to disclosure, particularly the price?
A: SEA Gas has Foundation Shipper Contracts with each of its customers: TRUenergy, Origin and International Power. SEA Gas holds all customer contract information confidential, both existing contracts and potential new contracts.
The Foundation Shipper Agreements Contracts were freely negotiated at a time when SEA Gas and the Foundation Shippers had equal negotiating power, and therefore neither side party was able to exercise "market power" requiring regulation.
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