Joint market gas for Gorgon partners

Quite a number of large gas customers had opposed the joint venture's applications for authorization of the joint market of the gas according to a statement made on Thursday by the ACCC (Australian Competition and Consumer Commission).

Peter Kell, acting chairman of ACCC said that the ACCC views this case as an important source of new gas supply for Western Australia as it is most likely to kick start earlier and also in larger volumes under joint marketing than it would otherwise.

Also, it seems that the separate marketing of Gorgon gas is currently unavailable commercially.

The ACCC stated that it assume that the Gorgon partners would be facing obvious risks if the Gorgon partners were to attempt to separately market which might just result in them deferring production and producing lower volumes of gas or lead to an increase in price which will reflect higher risks.

Also, the ACCC said that it would be imposing certain terms which serve to prevent information which are commercially sensitive from being transferred to other competing gas-producing projects.

The Gorgon partners were granted authorization until the end of December 2015, a period much shorter than what they had sought after.

This Gorgon project would be offering a welcome a new source of gas supply to help meet growing demands while at the same time diversify Western Australia's energy supply sources, according to Mr Kell.