A gas pipeline from the Northern Territory and a trading hub in Moomba are needed to help repair Australia’s broken market, according to Manufacturing Australia.
The lobby group wants a pipeline built from the NT to serve the east coast market, an idea that the territory’s chief minister Adam Giles will be pushing at today’s council of Australian Government meeting.
In a statement, Manufacturing Australia’s executive director Ben Eade said that the recent federal government green paper on energy acknowledged the east coast gas market had long been uncompetitive.
“Lack of gas infrastructure, too few options for trading gas and barriers restricting new producers from accessing and marketing gas are stifling competition in the gas market,” said Eade.
A positive move would be to build a pipeline from the NT to Moomba and establish a trading hub there.
“A gas trading hub at Moomba would increase price transparency, provide more options for trading gas and make it easier for smaller gas producers to access and individually market gas," said Eade.
Giles will request a pipeline be built, citing this as a significant nation building project.
According to Manufacturing Australia, a hub at Moomba could be established by the Australian Energy Market Operator and functioning within 12 months.