Pipeline operators have invested extensively in gas transmission pipelines in Western Australia. This is because the State’s gas fields are so distant from major domestic gas customers in the South West.
Major pipelines
Four major transmission pipelines supply the WA gas market:
- Dampier to Bunbury Natural Gas Pipeline – transports gas from the North West Shelf area to customers in the Geraldton, Perth, Mandurah and Bunbury areas;
- Goldfields Gas Pipeline – transports gas from the North West Shelf to customers in the Pilbara and Eastern Goldfields regions;
- Parmelia Pipeline – transports gas from various fields in the Perth Basin to customers in the South West; and
- Pilbara Energy Pipeline – transports gas from the North West Shelf area to Port Hedland.
Other major transmission pipelines include the Kambalda to Kalgoorlie Pipeline, the Mid West Pipeline and the Northern Goldfields Interconnect.
Regulation and licensing
In Western Australia, the Department of Mines, Petroleum and Exploration licenses major gas transmission pipelines.
It maintains a register with details on licensed petroleum pipeline operators in Western Australia: The Department of Mines, Petroleum and Exploration: Petroleum and Geothermal Register
Third-party access to transmission pipelines
The Economic Regulation Authority (ERA) regulates third-party access to gas transmission pipelines in Western Australia, in accordance with WA’s version of the National Gas Law and National Gas Rules.
Regulated pipelines (also known as scheme or covered pipelines) are subject to economic regulation. The ERA assesses and approves access arrangements, which set out the services offered by the pipeline operator and the terms and reference tariffs on which those services may be provided. This framework promotes efficient investment and operation of gas infrastructure, while enabling pipeline users to access regulated pipelines on fair and reasonable terms.
Non-scheme pipelines (also known as non-covered pipelines) are required to disclose information on pipeline service pricing and contractual terms and conditions to parties seeking pipeline services. Where efforts to agree the terms of access through commercial negotiations fail, a binding arbitration process applies.
Further information on access arrangements for gas pipelines is available from the ERA website: Gas Access - Economic Regulation Authority Western Australia
Further information about Western Australia’s version of the National Gas Law, known as the National Gas Access (Western Australia) Law, is available here: National Gas Law in Western Australia.
