Today, the Australian Energy Regulator (AER) published its Discussion Paper on whether to make a greenfields incentive determination for the proposed Bulloo Interlink.
- If we decide to make a determination, the Bulloo Interlink cannot become a scheme pipeline (that is, subject to full regulation) for the operative period of the determination (up to 15 years).
- If we decide not to make the determination, the Bulloo Interlink can potentially be subject to a form of regulation review in the future which may result in the Bulloo Interlink becoming a scheme pipeline.
We are interested to hear stakeholder views on the greenfields incentive determination process, and whether the AER should make the determination for the Bulloo Interlink.
Invitation for submissions
We invite stakeholders to provide submissions on the Discussion Paper by 5 pm AEST, Thursday 28 August 2025. Written submissions or requests to make a submission via alternative methods should be emailed to GasPipelineExemptions
aer [dot] gov [dot] au (GasPipelineExemptions[at]aer[dot]gov[dot]au).
If you wish to make a submission but are unable to do so by the due date, please contact us to discuss further options.
The AER prefers that all submission be sent in an electronic format in and publicly available, to facilitate and informed, transparent and robust consultation process. We understand that some stakeholders may wish to provide their views on a confidential basis. If you prefer to provide your views via a call with representatives from the AER team or in a confidential submission, please email us to discuss further.
We aim to make and publish the draft decision in October 2025.
Background
APA Group (APA), submitted to the AER its greenfields incentive determination application for its proposed Bulloo Interlink on 23 May 2025. APA proposes a determination period of 15 years. It will connect APA’s South West Queensland Pipeline (SWQP) and the Moomba to Sydney Pipeline (MSP) to transport gas from the northern upstream markets (in NT and QLD) to the southern demand centres (in NSW and Vic).
A greenfields incentive determination aims to encourage efficient investment in gas pipeline infrastructure by improving investment certainty, where it can be demonstrated that there are effective constraints on the pipeline service provider’s market power.
In deciding whether to make a determination, we must apply the regulatory test as set out in section 112 of the National Gas Law. This requires us to assess a range of factors, including how our decision to make the determination will promote access to pipeline services, the likely costs for an efficient service provider, efficient users and efficient prospective users and end users.
Under the National Gas Law (NGL) and National Gas Rules (NGR), all gas pipelines in Australia (excluding Western Australia) are regulated as either:
- scheme pipelines: subject to a stronger form of regulation, which includes price regulation by the AER through access arrangements (full regulation), or
- non-scheme pipelines: subject to a lighter form of regulation.
A pipeline will be a non-scheme pipeline when it is commissioned. However, it may become subject of a form of regulation review, for example if the AER receives an application for a scheme pipeline determination or if the AER considers that the service provider is exercising market power in respect of pipeline services.
More information on the AER’s powers to make a greenfields incentive determination can be found in the AER’s Pipeline Regulatory Determinations and Elections Guide.