You will be required to comply with this mandatory Code if you are a regulated gas producer in the East Coast gas market. A regulated gas producer is a person that carries on a business of producing regulated gas. Regulated gas is defined as gas which is in a gaseous state at standard temperature and pressure and consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons, the principal constituent of which is methane.
The Code contains:
- a price cap on wholesale contract negotiations between gas producers and buyers
- exemptions framework to incentivise producers to commit more gas to the East Coast gas market
- transparency obligations to increase visibility of the amount of uncontracted gas to be produced
- conduct provisions aimed at reducing bargaining power imbalances between producers and gas buyers
- minimum conduct and process standards for commercial negotiations.
