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Operation and management agreements

The operation, management, and maintenance of Australian Gas Networks gas distribution and transmission assets around Australia is carried out under a long-term agreement with APA Asset Management.

 

APA Asset Management

On 2 July 2007, APA Asset Management was appointed the major subcontractor to Australian Gas Networks.

It operates, maintains and extends the gas distribution networks. To learn more about APA, visit their corporate website: https://www.apa.com.au/

 

Australian Gas Networks Limited

Australian Gas Networks is paid by the retailers to transport gas through its networks to the retailers' customers. The tariffs are determined under the Access Arrangement for each of the Company's distribution networks. The terms of the services provided by Australian Gas Networks to each retailer are set out in a Haulage Agreement. In addition, separate Haulage Agreements have been entered into with a number of large volume consumers.

 

Retailers

The retailers purchase gas from the Gas Producers and pay a fee to the Transmission Pipeline Operators to bring the gas to the various cities in which they operate. Australian Gas Networks is paid a haulage fee (or tariff) to transport the gas through its distribution networks to the retailers' customers.

 

Operating and management agreements

Operating and Management Agreements have been entered into between Australian Gas Networks and APA Asset Management. These agreements set out the terms and conditions on which APA will operate and manage the Company’s networks.

APA was appointed on 2 July 2007 to operate and manage the networks in accordance with legal and prudential standards, and to provide the services and functions described below and any other services agreed between the parties.

APA's obligations to Australian Gas Networks include:

  •  Managing the haulage of gas through each network.
  • Operating and maintaining each network.
  • Planning, designing and constructing network extensions.
  • Assisting Australian Gas Networks with submissions to the national regulator.
  • Assisting Australian Gas Networks in promoting the use of natural gas.
  • Preparing and settling with Australian Gas Networks the budget for each financial year.
  • Providing Australian Gas Networks with regular information on financial and other management issues.
  • Reading meters and billing retailers.