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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Jemena’s perspective on Australian gas market dynamics: a vision of a fiercely competitive market facilitated by an interconnected supply chain

David Green A B and Thomas Allen A
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A Level 16, 567 Collins Street Melbourne, Vic. 3000, Australia.

B Corresponding author. Email: dave.green@jemena.com.au

The APPEA Journal 57(2) 462-464 https://doi.org/10.1071/AJ16090
Accepted: 27 March 2017   Published: 29 May 2017

Abstract

As pipeliners, we take a long-term view of the transformative opportunities facing the Australian gas industry. We believe a market-driven approach will overcome the current challenges around gas price volatility and supply constraints by further developing the missing links that will enable genuine connectedness, greater flexibility and operating synergies across a national gas transportation grid – one that can deliver gas where it is needed most and at the right price.

Looking at mature gas trading environments like the USA provides some aspirational direction in terms of the fluidity of the gas trading environment, where pricing is more dynamic. However, the past and present development opportunities within our own backyard also provide valuable insight. Building the Eastern Gas Pipeline transformed the east coast gas market by introducing a competitive alternative for gas transportation into Sydney and upstream competition between basins. A similar market-led opportunity exists today to build infrastructure connecting Northern Territory gas producers to east coast markets – introducing a competitive alternative for gas transportation and upstream competition between the Beetaloo/McArthur basins and the Surat/Bowen basins. Winning the right to build the Northern Gas Pipeline was an important first step in Jemena realising this vision.

Current regulatory discussions would not be relevant if the industry can shape its own market. Jemena’s northern Australia growth strategy could be the catalyst to resolving these challenges and avoiding further gas constraints or Australian Competition and Consumer Commission interventions seeking to address theoretical issues, rather than solving actual market challenges.

Keywords: coal seam gas, competition, demand, energy, energy policy, gas, gas transmission, infrastructure, interconnected, LNG, natural gas, market-based, markets, on-shore, pipeline, prices, safety, supply, trading.

David Green joined Jemena in 2007 and is currently General Manager Business Development, responsible for pursuing and leading both Asset Development and Mergers and Acquisitions Opportunity teams. Before taking on his current role, Dave was the General Manager Pipelines and was accountable for the overall profit and loss performance of Jemena’s pipeline business. This included managing the asset management, control room, projects and commercial aspects of Jemena’s pipeline business, as well as representing Jemena on industry groups and forums. Prior to joining Jemena, Dave worked for Qenos in the petrochemical industry where he held roles in engineering, plant operations, commercial and business strategy. David has BEng (Mech) and BCom degrees from Monash University.

Thomas Allen is an experienced energy sector economist and has spent the last six years in senior advisory roles at Jemena – a large energy utility that owns more than $10B of energy delivery infrastructure across the east coast and north of Australia. Thomas has deep knowledge of the commercial markets, economic regulatory frameworks and policy landscape that defines Australia’s electricity and gas midstream infrastructure sectors. Thomas is currently a commercial adviser in the Business Development (Mergers and Acquisitions) group, tasked with conducting commercial analysis and negotiations, and coordinating bid team due diligence processes. Thomas has BEc and BCom degrees from Monash University.