The Moomba Gas Supply Hub and two additional trading locations at the Moomba to Adelaide gas pipeline and the Moomba to Sydney route were opened for trading on June 1, 2016. The new hub will support standardisation for gas commodity and capacity trading between northern and southern gas markets in eastern Australia.
The Moomba Gas Supply Hub (GSH), located 770km north of Adelaide, is a part of an exchange network for the wholesale trading of natural gas allowing participants to place anonymous offers or bids on a specified quantity of gas, at a specified price, which can then be automatically matched on the exchange to form transactions.
Like the Wallumbilla GSH in Queensland which was established in 2014, the Moomba GSH enhances the transparency of gas supply by creating a voluntary market that offers a flexible method to buy and sell gas at interconnecting transmission pipelines.
In the case of the new hub, it is an exchange for the wholesale trading of natural gas at a location that serves as a major transit point for Cooper Basin gas connecting Queensland to New South Wales and South Australia and will allow market participants to place bids on quantities of gas making it easier for smaller participants to trade in the market,
The establishment of the Moomba Gas Supply Hub stemmed from the request of a number of large users in New South Wales and South Australia according to the Australian Energy Market Operator (AEMO) Managing Director and Chief Executive Officer Matt Zema.
The Moomba trading location uses the same trading platform, settlement systems, and is subject to the same regulatory framework as the three Wallumbilla trading locations.
The trading locations at Moomba will also support innovation and development of gas services at Moomba, such as storage and title transfer services.