SYDNEY – 14 November 2019 — CBL Markets (CBL), leading spot exchange operator for energy and environmental markets, and the Tasmanian Gas Pipeline (TGP), today announced they have facilitated the first primary capacity transaction via auction, since their partnership was announced last year. This partnership provides a trading platform for primary capacity and in-pipe loan gas products for the TGP via short-term storage capacity and loan gas auction.
The transaction was executed via CBL Markets exchange platform, for 3000 gigajoules (GJ) at $0.07/day of the 28 Day-Ahead Primary Capacity Contract via auction.
CBL Markets and the TGP have put a stake in the ground together, viewing primary capacity as the beginning of a range of products that will facilitate increased trading, transparency and efficiency in Australian gas and energy markets. These contracts are easily replicable in other global gas infrastructure.
“Today was a fantastic example of technology and infrastructure coming together to provide new trading opportunities to energy markets,” commented Ben Stuart, Chief Commercial Officer for XCHG. “The flexibility of these short-term products opens the market to participants and allows for efficient use of pipeline capacity and financial resources which ultimately benefit end consumers.”
CBL Markets, an XCHG Company, has been working with the TGP since June of last year to bring more advanced access to essential energy market infrastructure, support increased activity and liquidity in the market, and promote a more competitive landscape for traders.
“TGP is pleased to be working with CBL Markets to provide flexible storage and transportation products to south-eastern Australian gas market participants,” said Darren Giri, General Manager – Commercial for the TGP.
This primary capacity contract deal follows the recent XCHG announcement of the first exchange transaction of the platform’s initial differentiated gas trade – an energy product valued according to factors like methane emissions and water utilisation.
The shift in the way ‘low-carbon’ commodities are valued is building momentum, as evidenced by Liberty Steel Group’s aim for carbon neutral steel, Qantas’ intentions to slash emissions to zero by 2050 which will include investment in sustainable aviation fuels and an industry push for low carbon aluminium by the likes of Rio Tinto, among others.
In the coming months, CBL Markets is planning to continue its expansion of market infrastructure development, including both clearing and settlement services across the entire Australian energy market.
About CBL Markets
CBL Markets provides access to the world’s energy and environmental commodity markets, facilitating the secure and seamless trading of commodities like carbon, renewable energy, water, and gas. cblmarkets.com
About Tasmanian Gas Pipeline Pty Ltd
The Tasmanian Gas Pipeline (TGP) is the only pipeline supplying natural gas to Tasmania as well as providing an alternative connection into the Victorian Declared Wholesale Gas Market (DWGM). It transports natural gas from Longford in Victoria, under Bass Strait, to Bell Bay, Hobart and Port Latta in Tasmania and to the DWGM through the TasHub facility near Longford, Victoria. The TGP brings jobs and economic growth to the communities it passes through and provides the opportunity for more than 500,000 Tasmanians to take advantage of the many benefits of natural gas. tasmaniangaspipeline.com.au.