The Gas Supply Hub (GSH) Focus Report examines whether the GSH has delivered on its aims of supporting competition and efficiency in the broader east coast wholesale gas market. Our analysis found that the GSH has matured significantly since its establishment over a decade ago and is delivering on these aims.
This report is the second under the AER’s new functions to monitor and report on competition and efficiency in the east coast gas markets. The series of focus reports will inform our first biennial east coast wholesale gas market competition report, due for release in May 2026.
Key findings include:
- The GSH now represents a significant proportion of gas trading in the east coast gas market. Increased activity at Wallumbilla in particular, has provided several benefits to the broader east coast gas market, with participants having more options to balance contract positions and respond to changing market conditions. Trading has been limited in other locations, but may grow over time.
- Participation on the GSH has increased and most participant groups are well represented. There are no significant barriers to participation.
- The use of bilaterally negotiated trades settled ‘off-screen’ on the GSH have grown significantly in recent years and are now the primary form of trade. Off screen trading appears to have lowered barriers to trade for a range of participants, but high levels of bilaterally negotiated trade limits price transparency.
- The GSH is supporting efficient trading of gas between buyers and sellers. Most participants use short term trading on the GSH to complement long-term gas contracts or provide a more flexible alternative to downstream spot markets. The GSH also provides several mechanisms to deliver gas more efficiently, such as AEMO’s netting process.