Explore this Work Programme:
Overview
Gas users require a safe, reliable, fit-for-purpose product. Our gas quality work aims to ensure that industry arrangements will meet that need and promote a confident and efficient gas market.
- The Current Arrangements section has information about the Gas Quality Requirements and Procedures document.
- The Developing section has our paper Gas Quality June 2017 Update and information about the work Firstgas ongoing work aimed at improving gas quality arrangements.
- The Background section has information about the reasons for the Requirements and Procedures document and the history of our investigation into gas quality arrangements. It also includes a document history where you can find the key documents and stakeholder submissions.
Current arrangements
Requirements and Procedures Document
We maintain a Gas Quality Requirements and Procedures (Gas Quality R&P) document which describes the legal requirements and industry procedures for managing gas quality.
The current version of the document can be found under related documents below.
We developed an updated version of the document in anticipation of the Gas Transmission Access Code coming into effect in 2020 (which did not eventuate). The updated document, including our review of industry comment on a draft version is available in the Developing section.
Related documents
Developing
The potential consequences of a gas quality incident can be major. To check that the industry’s gas quality arrangements are fit for purpose and aligned with the Gas Act objectives, we review the arrangements from time to time as changes occur and/or new information comes to hand.
In 2016, First Gas Limited (Firstgas) acquired the gas pipelines previously owned by Maui Development Limited (MDL) and Vector Limited (Vector).
Since then, Firstgas worked with the industry to update and unify its access arrangements into a new Gas Transmission Access Code (GTAC). The arrangements relating to gas quality were also updated as part of that reform.
In 2017, we provided an update on developments since our earlier gas quality reviews. The Gas Quality June 2017 Update (see related documents below) proposed that we allow some time for the new Firstgas access arrangements to take shape before considering whether any issues arose out of those new arrangements.
In 2019, in anticipation of the GTAC being introduced on 1 April 2020, we updated the Gas Quality Requirements and Procedures document as described below.
Key areas
Gas Industry Co maintains a number of “Requirements and Procedure” documents that provide an overview of the legal requirements and technical standards that apply to particular areas of the industry, and describe common industry practices. These documents are a resource for interested parties so it is important that they are kept accurate and up to date.
In anticipation of the Gas Transmission Access Code (GTAC) coming into effect and replacing the Maui Pipeline Operating Code (MPOC) and Vector Transmission Code (VTC), we have reviewed and updated the Gas Quality Requirements and Procedures document and invited suggestions and comment from stakeholders. We received comments from First Gas Limited and Vector Limited. We address their suggestions in a “Review of comments” paper, and have updated the document accordingly.
Available below are:
- the original proposed update (Gas Quality Requirements and Procedures 2019 update, clean and marked-up);
- the comments we received on the proposed update and our review of those comments (Review of comments on June 2019 draft Gas Quality Requirements and Procedures document); and
- the revised update (Gas Quality Requirements and Procedures, clean and marked-up).
Related documents
Submissions
Related documents
Background
Gas users require a safe, reliable, fit-for-purpose product. Gas Industry Co's Gas Quality work aims to ensure that industry arrangements will meet that need and so promote a confident and efficient gas market.
Gas 'quality' has three main aspects:
- its chemical make-up - the 'gas specification';
- its detectability - the addition of odorant to ensure that leaks are easily detected; and
- its delivery pressure - so that it is safe for the intended use.
Gas is transported from gas treatment facilities, through the 'common pool' of transmission and distribution pipelines, to each end-user's gas metering facility. Gas quality is controlled by parties in that physical supply chain. However, gas wholesalers and retailers also have legal responsibilities for the quality of gas they sell.
There are a number of legislative and contractual arrangements that relate to gas quality. A number of agencies also have regulatory powers in relation to gas quality. Gas Industry Co has a responsibility when recommending gas governance arrangements under the Gas Act to ensure that those arrangements provide for gas quality in a manner that facilitates the safe, efficient, and reliable delivery of gas.
Gas Industry Co has investigated gas quality issues and consulted on those. In our August 2012 Investigation Update, we concluded that we had:
'…no reason to doubt that that gas quality is being managed by parties in the physical supply chain in a rigorous and professional manner. However, we believe that the small possibility that a gas quality incident could cause serious economic and reputational harm, coupled with 'common pool' features of gas pipelines, puts a particularly heavy onus on the industry to ensure a high degree of transparency. Also, the introduction of the Gas (Safety and Measurement) Regulations 2010 (Safety Regulations) has clarified the responsibility gas wholesalers and retailers have for gas quality. Demonstrating compliance with this responsibility will also require greater transparency.'
Developments
Since Gas Industry Co consulted on its Investigation Update paper in 2012, there have been several industry initiatives in relation to gas quality. A group of wholesalers and retailers initially worked to develop a 'Gas Information Exchange Protocol' aimed at giving them added confidence that service providers in the physical supply chain are meeting their obligations.
The document originated from the work of gas retailers wishing to ensure that they comply with the Safety Regulations. However, it became clear that the proposed Protocol had broader relevance and would require input from all participants in the gas supply chain to show the complete picture of how gas quality is managed. Gas Industry Co worked with industry stakeholders to develop a draft Protocol. That subsequently evolved into the Gas Quality R&P document. This document is published here.
A revised Gas Quality R&P document, updated for the anticipated introduction of the GTAC on 1 April 2020, will be introduced then. That document can be found here.