UNDERGROUND GAS STORAGE-LEGAL ANT REGULATORY REQUIREMENTS IN AUSTRALIA

Abstract

The storage of gas in underground naturally occurring reservoirs takes place in a variety of forms and for a variety of reasons. In many jurisdictions within Australia, the regulatory framework to deal properly with underground gas storage requires attention and, in some cases, significant refinement. Underground natural reservoir storage of gas in Australia is an option which is being increasingly investigated as fields close to infrastructure (such as pipelines and processing plants) become depleted and alternative uses are sought for those depleted reservoirs. In addition, gas storage may give flexibility to spot gas sales and other commercial operations, and facilitate greater market sophistication. Accordingly, it is important for the industry in Australia to understand the legal implications and their impact on this type of storage.