Today the AER published a focus report examining the role of the Gas Supply Hub (GSH) in supporting competition and efficiency in the east coast wholesale gas market.
The GSH is an electronic trading platform that was introduced in 2014 to support trade of upstream wholesale gas in response to the development of LNG exports in Queensland.
Its introduction was part of a broader strategy to develop short‑term markets for the east coast that would complement long‑term gas contracts by improving short‑term liquidity and introducing transparency and price discovery to a market that was largely based on opaque contractual arrangements.
Our analysis has found that the GSH has matured significantly since its establishment 10 years ago and is delivering on its aims of supporting competition and efficiency in the broader east coast wholesale gas market.
Both the number of participants utilising the GSH and the resulting trade has grown significantly in recent years. The GSH is also supporting efficient gas delivery and improved price discovery.
The performance of the GSH could be further enhanced by growing liquidity beyond Wallumbilla, improving price transparency through on‑screen trading and greater use of medium- and long-term products. Many of these issues may resolve as the GSH matures further.
Our Gas Supply Hub focus report is the second in a series of reports on efficiency and competition in the east coast gas markets. Our first report, a look at the Day Ahead Auction operations, was released on 3 October 2024.
This report series is being published in the lead up to our first biennial east coast wholesale gas market competition report, due for release in May 2026.