AEMC recommends gas hubs for east coast customers

The Australian Energy Market Commission has recommended that two trading hubs be established for gas trading to ensure more transparency in the market.

The Australian Financial Review reports that the Victorian, NSW and Queensland markets would be served by a hub in Victoria and one in Wallumbilla in south-central Queensland, which will have daily prices similar to the way iron ore is traded.

This would improve visibility and force pipeline owners to open up spare capacity, and would be part of recommendations announced today by regulator.

"To the extent it makes it easier to buy and sell the stuff, and move it around the system, it presumably provides better incentives for exploration and supply," the AEMC’ chairman John Pierce told The AFR.