Gas market

The Short Term Trading Market (STTM) is a day-ahead wholesale market for natural gas, which links transmission pipelines and distribution systems. The STTM operates at selected demand hubs in Brisbane, Sydney and Adelaide. The hubs are transfer points through which gas is transmitted and then delivered to the distribution networks.

The STTM provides price transparency and helps balance supply and demand variations. Market participants include energy retailers, power generators and other large gas users.

The Australian Energy Market Operator (AEMO) operates the STTM, which is designed to enhance gas market transparency and competition by setting prices based on supply and demand conditions.

Wallumbilla gas supply hub

Wallumbilla, a gas supply hub, is a pipeline interconnection point for the Surat–Bowen Basin, linking gas markets in Queensland, South Australia, New South Wales and Victoria.

This voluntary market responds to emerging challenges in the Australian east coast gas markets. Queensland’s developments in liquefied natural gas (LNG) exports have increased the need for more flexible and transparent upstream transactions between parties.

The hub promotes transparent and efficient gas trading, allowing participants to manage the risks associated with variable gas prices. It also deepens market liquidity by attracting participants such as LNG plants, industrial customers and gas-powered generators.

The concentration of activity at Wallumbilla creates a natural point of trade.