Beach Energy Limited, page-3

For those who are interested in the government’s $12 gas price cap. Existing gas contracts are not impacted. And wholesale spot market are excluded from the price cap.

From COE’s FY 23 Half Yearly Report
Page 6 that came out this morning.

Federal government intervention

In mid-December 2022 the Federal Government passed legislation, on an accelerated basis, imposing a A$12/GJ price cap applicable to new agreements entered into for the sale of gas by a producer to a buyer within the east coast gas market during calendar year 2023. Existing contracts are not impacted and the sale of gas into the short-term trading markets and the Victorian declared wholesale gas market are excluded from the price cap.
The A$12/GJ price cap for 2023 does not apply to Cooper Energy’s existing portfolio of gas contracts, including the GSA signed with AGL in November 2022 that underpins OP3D. Nor does it impact Cooper Energy’s spot sales, as the Company is a direct seller into the Victorian declared wholesale gas market.
The December 2022 legislation included provision to introduce a mandatory code of conduct on producers, with the intent to:
 regulate conduct relating to supplying or acquiring gas;
 require a person to supply gas in a particular circumstance; and
 deal with and resolve disputes between gas market sellers and buyers.
It is understood that the initial code will be developed in the first half of calendar year 2023, and is proposed to include a reasonable price provision linked to a binding arbitration process if parties fail to agree gas supply terms, including price.
The timing of OP3D FID and other new gas supply opportunities is now subject to the finalisation of, and a satisfactory regulatory and commercial outcome under, this proposed legislation (as noted above).