Asia & the Pacific Policy Studies

Reforming the Eastern Australian gas market

By Xunpeng Shi and R. Quentin Grafton

We analyse the deficiencies behind the Eastern Australian gas market by applying a framework proposed by the International Energy Agency. We show that this gas market has structural weaknesses that include inadequate supplies at hubs; limited pipeline capacity; predominance of long‐term gas supply contracts; deficiencies in design; and difficulties with third party access. We provide five policy actions to help remedy these deficiencies and to help establish a functional gas market. Although our study is limited to Australia, it, nevertheless, provides insights for countries in the Asia Pacific region, which may wish to move towards more competitive gas markets, including trading hubs.

Image: Ken Doerr on flickr


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