The ACCC will allow joint marketing arrangements between the four owners of the Mereenie gas field in the Northern Territory allow them to collectively make supply agreements.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Mereenie is located in the Amadeus Basin, 250 km west of Alice Springs and Central Petroleum, Macquarie Mereenie, New Zealand Oil and Gas, and Cue Energy are the joint venture partners in the field.
ACCC authorisation of the arrangements permits joint venture participants to jointly market gas from the Mereenie field until February 2027. Within this period, they can enter into gas supply agreements with customers on common terms and conditions that could operate up to February 2032.
Growth in the fields now extends to customers in Mount Isa and beyond via the Northern Gas Pipeline which also hopes to pump gas from the Beetaloo further north in the territory.
The gas to be jointly marketed from the Mereenie field accounts for 20 per cent of the gas supplied to the Northern Territory and Mount Isa regions, and less than one per cent of gas supplied to the east coast gas market.
READ ALSO:
"Australia's competition laws generally require businesses to act independently when deciding who to sell to, but the ACCC may grant an authorisation if it's satisfied that the likely public benefit outweighs any likely public harm," ACCC Commissioner Stephen Ridgeway said.
"In the case of Mereenie gas, joint marketing arrangements will likely reduce transaction costs and encourage investment to increase gas production, which will facilitate gas being brought to market sooner."
"Separate marketing of gas is generally preferable as it results in more competitive outcomes; however, the volume of gas produced at this field is relatively small, and demand in the NT-Mount Isa gas market is mostly met by a small number of large contracts. For these reasons, separate marketing is unlikely to result in significant competition benefits," Mr Ridgeway said.
"Gas users in the NT-Mount Isa region have the option of alternative supply from sources such as the Power and Water Corporation in the NT's Blacktip Field, the Cooper Basin, and potentially the Galilee Basin."
"The presence of alternative suppliers limits the risk of the Mereenie joint venture offering its gas at higher prices, or on less flexible terms," Mr Ridgeway said.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Bookmark https://www.northweststar.com.au/
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter
- Follow us on Instagram
- Follow us on Google News
DO YOU HAVE SOMETHING TO SAY? Send letters to the editor or story tips to nwseditorial@austcommunitymedia.com.au
Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
