Project timeline

Overview

Engagements
Accepting submissions
Sector
Gas
Segment
Distribution
Region
Queensland
South Australia
Status
Current
Commencement date
Effective date

On 16 October 2026, we published our draft decision to grant Australian Gas Networks Limited (AGN) five-year exemptions from the gas ring-fencing obligations in sections 139 and 140 of the National Gas Law (NGL) for its Hydrogen Park South Australia (HyP SA) and Hydrogen Park Gladstone (HyP Gladstone) hydrogen trial projects. 

Both projects produce renewable hydrogen that is blended with natural gas and supplied through distribution networks to customers in Adelaide (South Australia) and Gladstone (Queensland). 

Under our draft decision, the exemptions will commence on 30 November 2026, when the projects’ existing deemed exemptions under Part 2 of Schedule 7 to the National Gas Rules (NGR) expire, and remain in effect until 30 November 2031. 

Under the exemptions, AGN would be required to notify the AER within 15 business days of:

These proposed conditions are intended to keep the AER informed of material changes relevant to the exemptions and are additional to AGN's existing notification obligations under rule 34(6) of the NGR.

Background

The ring-fencing framework for gas pipeline service providers is set out in Part 2 of Chapter 4 of the NGL. The ring-fencing framework requires service providers to separate gas pipeline services from related businesses. The requirements are intended to prevent a related business from gaining a competitive advantage through its common ownership or operation of a pipeline, including through favourable access or pricing. 

The NGR allows service providers to seek exemptions where the relevant pipeline is not significant, the costs of complying with the requirements outweigh the resulting public benefit, and appropriate internal controls are in place.

Learn more about ring-fencing

Key Documents

Key Documents

AER Draft decision - AGN Ring-fencing exemption determination

Authors
AER
Content type
Document

Hydrogen Park South Australia and Hydrogen Park Gladstone Ring-fencing exemption application

Authors
AGN
Content type
Document