Unidentified gas (UIG), continues to create issues for shippers and suppliers alike. Since the introduction of new gas settlement arrangements in June 2017, the UIG process has been problematic.
The nub of the issue is that the initial allocation of UIG volumes can range between -15% and +25% of all gas flowing through the local distribution networks. Our chart this week looks at the 12 rule changes to tackle various elements of UIG.
Commercial and market outlook
For many, the first of April is marked in calendars as a day for jokes and silly nuisances. For the few, specifically the energy industry, we have it pencilled in for the release of the upcoming year’s Marginal Loss Factors (MLFs). Over the last half-decade, movements in MLFs have received...
Energy storage and flexibility
The events leading up to the recent market suspension in June have highlighted the role that peaking gas-fired generation plays in satisfying demand and setting prices across the NEM in the morning and evening peak periods. The team recently explored some of the drivers and effects of these events in...
Power and gas networks
Identification of Unidentified Gas (UIG) and its allocation has been a contentious issue for some time, there are a range of views across the gas industry on how it could be improved. In this 'Chart of the week', Hursley Moss discusses the recent trends of UIG and the possible reform...
Commercial and market outlook
Last year it was difficult to imagine that spot gas prices in Australia would hit unprecedented levels of more than $40-50/GJ, with AEMO capping the DWGM price at $40/GJ. By comparison, the DWGM only averaged $5.10/GJ last year. As was mentioned by Energy Market Intelligence Manager Mohsin Ali in the...
Power and gas networks
Australia’s gas markets are in the middle of an unprecedented price spike. Current prices in the Victorian Declared Wholesale Gas Market (DWGM) have been tracking in the $20-40/GJ range since early May 2022, with prices hitting $50/GJ on 30 May. Prices in the other gas hubs of Sydney and Brisbane...
Energy storage and flexibility
In July 2021, final rules were published to introduce two new market ancillary services – a very fast raise and very fast lower service. These markets would provide an FCAS contingency response faster than the existing 6-second market. The Fast Frequency Response (FFR) markets are set to commence on 9...
Regulation and policy
The AEMC's new rule change for storage integration into the NEM provides more flexibility for hybrid systems and VRE owners to more effectively level their bids and participation into the market. This means, if the new rule takes place, hybrids can manage their own internal energy exchange behind the connection...
Commercial and market outlook
The Declared Wholesale Gas Market (DWGM) prices in Victoria have been on a rising trend since the start-up of LNG exports in 2015. Is this trend sustainable, given the Gas Statement of Opportunities (GSOO) forecasts an improved gas supply outlook with the new Port Kembla Gas Terminal (PKGT) expected to...
