By Angela Macdonald-Smith
Nov. 12 (Bloomberg) -- Australia's New South Wales state plans to introduce laws to ensure more reliable supply of natural gas to households and businesses after deliveries to some large customers were restricted in June.
The laws, to be introduced before the next Southern Hemisphere winter, extend the Gas Supply Act to gas wholesalers to ensure they meet peak-season demand from retailers, Ian Macdonald, the state's energy minister, said today in an e-mailed statement.
About 250 large electricity users in New South Wales and the Australian Capital Territory had to cut their gas consumption in the June 22-24 period in a process known as load-shedding. The disruptions came after flows of the fuel into a pipeline from Moomba in central Australia to Sydney, the nation's most-populous city, failed to meet demand during the June 5-22 period.
A government inquiry found that the load-shedding was due to inadequate links between the wholesale gas companies and the retail market in New South Wales, according to the Department of Energy, Utilities and Sustainability's Web Site. The shortage wasn't caused by failures in supply systems or unprecedented levels of demand, it said.
APA, Santos
APA Group, owner of the 1,300-kilometer (808-mile) Moomba- Sydney gas pipeline, said it met all of its contractual obligations and had more-than-sufficient pipeline capacity to meet the peak gas demand if enough fuel had been delivered into the system. Companies that use the pipeline include AGL Energy Ltd., Origin Energy Ltd., CLP Holdings Ltd.'s TRUenergy Pty. unit, Country Energy and Energy Australia.
``APA Group has been working with the NSW government and all other stakeholders to ensure that this type of disruption does not occur in the future,'' the Sydney-based company said today in a statement to the Australian Stock Exchange. ``APA will continue to work with all involved on the drafting and implementation of the new wholesale gas market rules.''
Santos Ltd., which supplies gas to the pipeline, has stated to could have made available more fuel from the Moomba plant given sufficient notice, the inquiry's report said. The pipeline's customers, known as the shippers, failed to make arrangements to supply sufficient gas to meet customer demands, it said.
To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net
Last Updated: November 12, 2007 00:54 EST
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