Today, the Australian Energy Regulator (AER) published a draft decision to grant Australian Gas Networks Limited (AGN) exemptions from 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.
This exemption from section 139 will enable AGN to continue operating HyP SA and HyP Gladstone without creating a separate business entity. The exemption from section 140 will enable AGN to share marketing staff across all its projects.
Our draft decision is guided by the National Gas Objective. The AER considers that the absence of current competition reduces the immediate competition concerns that ring-fencing obligations are intended to address.
We propose that the exemptions commence on 30 November 2026, when the trial projects’ existing deemed exemptions under the National Gas Rules expire, and remain in effect until 30 November 2031. The five-year period seeks to balance regulatory certainty with the need to potentially revisit the exemptions if there are future relevant developments in the renewable gas market.
The proposed exemptions are subject to the following conditions to ensure the AER remains informed of potential material changes. AGN would be required to notify the AER within 15 business days of:
- a material change in the nature or scale of either project
- a formal third-party request to connect or access the Gladstone or Tonsley distribution networks for a renewable gas production facility
- any material change to its internal controls relevant to either project, including controls that substantially replicate the associate contract requirements, and provide updated documentation of those controls.
Invitation for submissions
Stakeholders are invited to provide written submissions in response to this draft decision by 5 pm AEDT on 6 November 2026. 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).
The AER prefers to publish submissions to support transparency. Parties seeking confidential treatment should contact the AER before lodging a submission, identify confidential information, and provide a public version where possible.
The AER will consider the matters raised in submissions before making its final decision, which is expected by 30 November 2026.