On 13 August 2026, Australian Gas Networks Limited (AGN) applied to the AER for exemptions from certain minimum gas ring-fencing requirements for its Hydrogen Park South Australia and Hydrogen Park Gladstone projects.
Both projects produce renewable hydrogen, which is blended with natural gas and supplied to customers in Adelaide (South Australia) and Gladstone (Queensland).
From March 2024, the projects have benefited from deemed exemptions from the minimum ring-fencing requirements under the transitional provisions of the National Gas Rules (NGR). The deemed exemptions expire on 30 November 2026.
The AER is assessing AGN’s applications under rule 34 of the NGR. As a next step, the AER expects to publish a draft decision and invite submissions before making its final decision.
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
The AER has published a Compliance bulletin – new obligations on gas pipeline, compression and storage service providers and a Gas ring-fencing decision guide.