Wholesale Market

Service provider agreement

Gas Industry Co entered into a service provider agreement with M-co in 2008 for provision of a trading system. That agreement was novated to NZX in 2009 when NZX purchased the business assets of M-co.

The service provider agreement can be viewed here.

There are four interlinked documents that govern the operation of the New Zealand Gas Exchange:

Participant Undertaking

Rules of the New Zealand Gas Exchange

Participant Variance Agreement

Standard Trading Terms

Related Documents:

• Determinations Document This document contains various parameters governing the operation of the New Zealand Gas Exchange (as required by the Rules) and the process by which participants will be cashed-out for any imbalances they create at the Trading Hub (as required by the Participant Variance Agreement).
• Guidelines on Adjusting Net TQ This document sets out principles by which Gas Industry Co will calculate Net Traded Quantities and cash-outs in the event of a curtailment at the Trading Hub, as required by the Participant Variance Agreement.
• How to Trade on the New Zealand Gas Exchange This document is a users' guide to the New Zealand Gas Exchange and includes references to the relevant trading rules.

Application Process

Entities wishing to join the market must apply using the form below and must supply all requested information.

• Determine the effective date of admission (which, under the Rules, will be not less than 5 days from the date of notice);
• Advise the Trading System Operator, so that an account for the applicant can be created; and
• Request MDL to include the Trading Hub Delivery and Receipt points in the applicant's Transmission Services Agreement.

Ministerial Consent

For trades where s41 of the Crown Minerals Act 1991 applies, an application form for Minister's consent can be found here on the
Ministry of Economic Development website.

Date Published: April 2007

Author: Gas Industry Co

Following extensive consultation with gas industry participants, it was suggested that Gas Industry Co take a staged approach to development of a wholesale gas trading market, the first step being to develop a standard gas sale contract for use in short term, direct-bilateral trades.

Gas Industry Co, in conjunction with industry participants, has developed a standard gas sales contract which is available free of charge for use by industry participants. Please click on the following links to view the GSA and Standard Terms:

Gas Supply Agreement

Standard Terms

The standard contract comes in two parts:

• A Gas Supply Agreement in which the parties specify the variable terms of trade; and
• A schedule of the standard, non-variable terms of trade.

As the standard contract is designed for trading on both the Maui and Vector systems, arrangements for the transportation of gas are dealt with outside of the standard contract. The standard contract provides for the non-exclusive trading of gas and therefore does not contain any restrictions on the on-sale of gas to third parties.

Gas Industry Co has developed a basic user guide to assist with use of the standard contract. Please click on the following link to view the user guide:

User Guide