On 16 May 2025, we published the final decision for the Kurri Kurri Lateral Pipeline (KKLP) classification.
We have decided to classify the KKLP as a transmission pipeline following stakeholder consultation on the draft decision in March and April 2025. We have considered stakeholder feedback in making our final decision.
This is the AER’s first pipeline classification decision following reforms to the gas pipeline regulatory framework in March 2023.
Background
All scheme and non-scheme pipelines must be either classified as a transmission or distribution pipeline.
Following reforms to the gas pipeline regulatory framework in 2023, the AER is responsible for determining the classification of pipelines which are not yet classified and for making decisions about the reclassification of pipelines.
Under section 117 of the National Gas Law, pipeline service providers are required to make a classification application to the AER within 20 business days after the commissioning of a pipeline, which is not yet classified as a distribution or transmission pipeline.
Transmission and distribution pipelines have similar regulatory obligations under the National Gas Law and National Gas Rules. However, a transmission pipeline classification means that the pipeline must also report information on AEMO’s Gas Bulletin Board and the Short-Term Trading Market, a wholesale gas market operated by AEMO. Distribution pipelines do not need to report this information.
More information on the AER’s classification and reclassification powers can be found in Chapter 6 of the AER’s Regulatory Determinations and Elections Guide.