Submission on the Kurri Kurri Gas Pipeline

The JEC made submission to the Australian Energy Regulator’s Draft Decision on the Kurri Kurri Lateral Pipeline classification.

The JEC does not support classifying the 24-kilometre storage infrastructure and compressor station of the KKLP as a transmission pipeline. Our understanding of the proposal suggests this infrastructure should more appropriately be regarded as a dedicated storage asset associated with the Kurri Kurri gas generator, with its costs recovered directly from the operator of the generator.

We are concerned that classifying the storage infrastructure as a transmission pipeline has cost implications for consumers and is, consequently, not in the long-term interests of gas consumers. Classification as a transmission asset may result in gas consumers carrying associated costs and effectively subsidising an electricity generation asset, benefitting the operators of the generator.