The Kalgoorlie Kambalda Pipeline (KKP) is a transmission pipeline which transports gas from Kalgoorlie to Kambalda in Western Australia. The KKP comprises of 44 kilometers of pipeline and ancillary assets, with a capacity of 26 TJ/day. The KKP currently provides a firm forward haul service, which is a service where the pipeline operator commits to receive and deliver a specified quantity of gas for a user.

KKP’s Application For Light Regulation
The National Gas Access (WA) Act 2009 (NGA) and the National Gas Law (NGL) came into effect on 1 January 2010. Under the NGL the National Competition Council is the body that has the responsibility of deciding whether or not to make a light regulation determination in respect of a covered pipeline.

On 22 April 2010 the National Competition Council received an application from Southern Cross Pipelines Australia Pty Ltd (a wholly owned subsidiary within the APA Group) under the National Gas Law for the light regulation of the covered Kalgoorlie to Kambalda Pipeline in Western Australia.

On 29 June 2010 the Council released its final determination and statement of reasons in favour of light regulation of the Kalgoorlie Kambalda Pipeline. The determination came into effect on 28 August 2010 (60 days following the release of the final decision).

Light Regulation
The NGL introduced the availability of 'light handed' regulation to covered pipelines to ensure that the form of regulation is appropriate for all pipeline services. This form of regulation leads to significantly reduced administrative costs to the regulated service provider and the regulator.

A less intrusive form of regulation is considered to be appropriate where the market power exercised by the provider is less substantial and there is the potential for contestability for the services to emerge. It may also be appropriate where the number of access seekers is relatively small and these parties can themselves exercise some countervailing market power in the course of commercial negotiations. Further, light regulation may be an appropriate option for regulation where particular assets are in a transition towards effective competition.

The move to providing for a lighter form of regulation under the NGL involves regulatory methods that do not control prices directly, but emphasise commercial negotiation and information transparency, with regulatory intervention through the right to the arbitration of disputes.

Under the previous regime, the KKP was required under legislation to submit an access arrangement to the ERA for approval. 

The notices by the ERA and Offgar advising of postponement of regularoty requirements and applications made by KKP to extend the time to lodge a proposed Access Arrangement are availble on the Kalgoorlie to Kambalda Access Arrangement page.