NW Shelf Gas joint marketing scrapped

The Australian Competition and Consumer Commission has agreed to a request by North West Shelf Gas Pty Limited to revoke its joint gas sales agreement for the Western Australian market.

The authorisation was granted to NW Shelf Gas in 1977 by the Trade Practices Commission.

The North West Shelf project participants established the joint venture for the sale of gas to the Western Australian domestic market and sought authorisation from the TPC.

In 1977 the TPC granted authorisation recognising the potential benefits to the Australian economy and how the success of the project depended on the joint venture arrangement.

Authorisation was granted to the joint venture partners to 'discuss and agree together the common terms and conditions (including price) upon which natural gas produced pursuant to their programmes ... will be offered for sale to potential customers and to discuss and agree a method(s) for marketing such gas'.

This authorisation had no end date and would have operated until the ACCC revoked it.

On 14 December 2007, North West Shelf Gas Pty Limited applied to revoke authorisation A18492 on the basis that there is no need to maintain the authorisation.

The joint venturers intend to continue their gas joint marketing practices, including ongoing administration of gas supply contracts, without it.

The ACCC received a number of submissions on the application, all of which supported the revocation of the authorisation.