BPT 0.44% $1.14 beach energy limited

East coast gas prices are mainly contract but the is a new spot...

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    East coast gas prices are mainly contract but the is a new spot market. Background from Dept of Resources (pg 49) here: http://www.ret.gov.au/energy/Documents/facts-stats-pubs/Energy-in-Australia-2011.pdf

    "The Australian domestic gas market consists of three distinct regional markets: the eastern market (Queensland, New South Wales, Australian Capital Territory, South Australia and Tasmania); the western market (Western Australia); and the northern market (Northern Territory).
    The geographical isolation of these markets makes interconnection costly and currently uneconomic. Until recently, and with the exception of Victoria,
    wholesale gas was sold under confidential long-term contracts between producers, pipeline operators, major users and retailers. The Victorian Wholesale Gas Market was established in 1999 to increase the flexibility of
    market participants in buying and selling gas. Overall, gas traded at the spot price accounts for around 10 to 20 per cent of wholesale volumes in Victoria,
    with the balance sourced through bilateral contracts or vertical ownership arrangements between producers and retailers.
    In September 2010, the Sydney and Adelaide hubs of the Short Term Trading Market (STTM) commenced operation. The STTM is a day-ahead wholesale spot market for gas that aims to increase price transparency and improve efficiency and competition within the gas sector. Additional STTM hubs are
    intended, with a Brisbane hub expected to be operational by late 2011."

    The STTM is on AEMO's site, price data in the column on the far right.
    http://www.aemo.com.au/en/Gas/Operational-Data/STTM-Data

    I'd be cautious as it only covers a fraction of gas volumes, but it is another bit of data to throw in the mix.
 
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