Today, the Australian Energy Regulator (AER) published its draft decision to classify the Kurri Kurri Lateral Pipeline (KKLP) as a transmission pipeline.
We consider that the pipeline’s characteristics are consistent with that of a transmission pipeline and that its primary function is to convey gas to a market.
In making this draft decision, we have had regard to stakeholder feedback, the national gas objective and the pipeline classification criterion set out in section 13 of the National Gas Law. The criterion requires us to consider the pipeline’s primary function and factors such as the pipeline’s diameter, pressure, injection points, area served, configuration and jurisdictional licence.
Invitation for submissions
We invite stakeholders to provide submissions on our draft decision by 15 April 2025. Written submissions or requests to make a submission via alternative methods should be emailed to AERgasreform
aer [dot] gov [dot] au (AERgasreform[at]aer[dot]gov[dot]au).
We will make our final decision within 20 business days after submissions close.
Background
The KKLP is a pipeline connecting the Hunter Power Project at Kurri Kurri in NSW to the existing Sydney to Newcastle Pipeline near Newcastle. The pipeline is expected to be commissioned by the end of March 2025. It is owned and operated by APA Group.
All scheme and non-scheme pipelines must be either classified as a transmission or distribution pipeline.
Following gas pipeline regulatory reforms in March 2023, the AER is responsible for classifying pipelines which are not yet classified and making pipeline reclassification decisions. This is our first pipeline classification decision.
Under section 117 of the National Gas Law, pipeline service providers must make a classification application to the AER within 20 business days after the commissioning of a pipeline if it is not yet classified as a distribution or transmission pipeline.
More information on the AER’s classification and reclassification powers can be found in the AER’s Pipeline Regulatory Determinations and Elections Guide.