Wallumbilla in Queensland is a major gas supply hub. As a pipeline interconnection point for the Surat-Bowen Basin, it links gas markets in Queensland, South Australia, New South Wales and Victoria. It services industrial gas customers, LNG export facilities and gas powered generators, making it a natural point of trade and an ideal location for a gas trading exchange.
To supplement the voluntary gas supply hub located at Wallumbilla, the Moomba hub was established from 1 June 2016 to facilitate trade on the Moomba to Adelaide Pipeline (MAP) and Moomba to Sydney Pipeline (MSP). A spread product also allows for trading between the Wallumbilla and Moomba markets on the SWQP (representing the price differential between the two hubs at the MSP and WAL trading locations).
The spread indicator shows the difference between the highest bids (buy) and lowest offers (sell) price of gas commodity/service products on the gas supply hub exchange. As bid/offer prices in the Gas Supply Hub vary across the trading window each day, the measurements here are calculated as daily time-weighted averages for each product/location combination displayed in each of the figures.
This figure shows the spread amount (the difference between the time-weighted offer and bid prices in dollars) on a quarterly basis for the Moomba to Sydney Pipeline (MSP) trading location.
A lower spread amount (i.e. the closer the bid and offer prices) indicates a higher level of liquidity.
NOTE: These differences between the time-weighted lowest offer and highest bid prices used in the calculation of the bid-offer spread metric have been normalised over the open trading period (9 am to 5 pm) to reflect the spread amount in dollar terms, comparable to how they would appear in the unweighted market data. Numbers from 1 March 2019 are normalised over the new trading window from 8.30 am to 7 pm.