Our work on information disclosure was established to consider whether current market arrangements related to information disclosure are sufficient or whether further arrangements are required.
Gas Industry Co has held discussions with industry and wider energy sector participants to understand their perspectives on information disclosure in the gas sector. Several parties expressed concern that, from time-to-time, good information has not been made available to all stakeholders and are calling for higher levels of information disclosure.
On 25 July 2018, the Minister of Energy and Resources Hon Dr Megan Woods wrote to Gas Industry Co requesting that it investigate whether the existing arrangements for industry participants to disclose information that could have an impact on the downstream gas market were adequate. The letter highlighted the recent Pohokura pipeline outage as an example of an occasion where a higher level of information disclosure may have been warranted. The letter from the Minister, and Gas Industry Co’s response are available below.
Recognising the above, a new workstream on information disclosure has been set up. The workstream will consider whether current market arrangements related to information disclosure are sufficient or whether further arrangements are required. An Options Paper on Information Disclosure was released in early March 2019 for consultation. The paper lays out a set of options for the industry to consider.
In January 2021 we released our Draft Statement of Proposal: Gas Production and Storage Facility Outage Information for consultation. We received 16 submissions.
These views were used to inform the development of the Final Statement of Proposal: Gas Production and Storage Facility Outage Information below. The paper assesses the problems with inadequate production and storage facility outage information and identifies options for addressing these issues.
The date for submissions closed on 26 August 2021, with Gas Industry Co having received 9 submissions. These submissions are available below.
On 17 December 2020, Gas Industry Co released its Draft Statement of Proposal: Gas Production and Storage Facility Outage Information paper for consultation.
The paper sets out a draft Statement of Proposal for the disclosure of gas production and storage facility outage information and seeks parties’ views on the various matters included in the assessment. These views will be used to inform the development of the final Statement of Proposal.
The date for submissions closed on 4 March 2021, with Gas Industry Co having received 16 submissions. These submissions are available below.
Gas Industry Co's consultation on its paper Information Disclosure: Problem Assessment closed on Monday 9 December 2019. Submissions received are available below.
Based on our March 2019 Options Paper and related submissions, the Information Disclosure: Problem Assessment paper (found below) identifies several specific information areas or ‘information elements’ where we consider there could be information transparency or asymmetry issues. The paper assesses these information elements against the Government’s policy objectives for the sector as identified in the Gas Act (1992) and the Government Policy Statement on Gas Governance 2008 (GPS).
On 15 May 2020, Gas Industry Company released its Analysis of Submissions on its October 2019 consultation paper: Information Disclosure: Problem Assessment. The Analysis of Submissions is found below in Related Documents.
The Information Disclosure: Problem Assessment paper released in October 2019 for consultation identified several specific information areas or ‘information elements’ where Gas Industry Company considers there could be information transparency or asymmetry issues. The paper assesses these information elements against the Government’s policy objectives for the sector as identified in the Gas Act (1992) and the Government Policy Statement on Gas Governance 2008. In December 2019, at the close of our consultation period, we received nineteen submissions on the paper.
The submissions received were generally in agreement with Gas Industry Company’s assessment of the discussed ‘information elements.’ However, there were three elements where parties had differing views. These were contract price and volume information, forecasts of major users’ gas consumption and major gas user facility outages. Given the range of views that we received in submissions on these three matters we gave submitters a further opportunity to comment on these elements through a cross-submissions process. Eleven cross submissions were received at the close of the consultation period.
The Problem Assessment paper from October 2019 and the submissions on the paper can be found here.
To assist parties with the above mentioned cross-submissions, specifically submissions relating to the disclosure of major gas user facility outage information, Gas Industry Company has retained an industry expert (John Bay, Contract Strategies Ltd) to provide his independent views of the issues associated with the disclosure of Methanex’s planned and unplanned plant outages. Methanex, being the largest major gas user in the industry, has been at the centre of many of the submitted views associated with major gas user outage disclosure. The paper that the expert has developed is available below.
Gas Industry Co is pleased to release its Analysis of Submissions on its March 2019 consultation paper: Options for Information Disclosure in the Wholesale Gas Sector (Options Paper).
Twenty submissions were received on the Options Paper from a wide range of parties spanning the New Zealand energy sector. Given the range of perspectives in the submissions, we decided to have a cross-submissions process for parties to provide further information on issues they consider are important. Thirteen cross-submissions were received.
The next step in this work programme will involve the development of a specific problem statement along with particular information disclosure elements. We plan to release a paper on this topic for consultation in October.
The Analysis of Submissions, and other associated documents can be found below.
Last August, we established the information disclosure workstream as an initial step in the process to address potential information issues relating to information availability in the wholesale gas sector. As part of that workstream we will consider whether current market arrangements related to information disclosure in the sector are sufficient or whether further arrangements are required.
We released the Options Paper for consultation in March 2019 and received twenty submissions. The Options Paper sets out a proposed problem statement and discusses the importance of information for the operation of a well-functioning market. The options are described at a concept level and are evaluated qualitatively. Submissions will be used to assist in determining whether there is potential information issue, and if there is an issue, the extent of the issue and the appropriate option for detailed design and evaluation.
Gas Industry Co received twenty submissions on the Options Paper for Information Disclosure (Options Paper) from a wide range of parties spanning the New Zealand energy sector. That consultation closed on 17 April 2019. The twenty submissions can be viewed here.
There are a number of submissions containing detailed responses to various issues raised in the Options Paper, with some having different perspectives on several issues. For instance, there is a range of perspectives on the issue of which parties should be included in an information disclosure regime. In particular, should major users be included in outage disclosure or forecasts of future consumption?
Given the range of perspectives in the submissions, Gas Industry Co decided to have a cross-submissions process for parties to provide further information on issues they consider are important. Submitters were encouraged to provide examples and background information supporting their positions.
The consultation period for receiving cross-submissions ended on Thursday 27 June 2019.
On Friday 18 February 2022, we recommended to the Minister of Energy and Resources that new gas governance rules are made for the disclosure of gas production and storage facility outage information. This recommendation followed the Statement of Proposal: Gas Production and Storage Facility Outage Information that we published in July and incorporates feedback we received from stakeholders on the proposal.
These rules will provide for the disclosure of planned and unplanned outages of gas production and gas storage facilities over a specified threshold and monitoring of compliance with these disclosure obligations. We are also recommending amendments to the Gas Governance (Compliance) Regulations 2008, so that the compliance framework in these regulations applies to the proposed Rules.
We consider that these rules, together with the amendments to the compliance regulations, will achieve the regulatory objective of ensuring that there is effective and timely availability of material gas production and storage outage information for all gas and related market participants.
On 18 May 2022, the Minister of Energy and Resources approved Gas Industry Co’s recommendation to introduce new gas governance rules for the disclosure of gas production and gas storage facility outage information.
A copy of Gas Industry Co’s recommendation to the Minister can be found here.
Gas Industry Co is seeking feedback on the drafting of the proposed rules available below.
Submissions are due by 5pm Monday, 25 July 2022.
Please email your submission to [email protected]
Gas Industry Co’s recommendation to the Minister was also accompanied by a recommendation for amendments to the Gas Governance (Compliance) Regulations 2008 to provide for enforcement of the Gas (Facilities Outage Information Disclosure) Rules under the existing compliance regime. The amendments to these regulations will be considered by Cabinet. If the amendments are approved, the process is for the amendments to be drafted by the Parliamentary Counsel Office.