The Short Term Trading Market (STTM) is a wholesale market system designed to facilitate short term gas trading using market driven short term (daily) prices. The STTM will operate initially in the New South Wales and South Australia hubs, with the objective to expand to other state-based hubs (the transfer points through which gas is transmitted via pipelines and facilities and delivered to the distribution networks).
The STTM will operate in conjunction with the underlying gas supply, transportation and network contracts. The physical operation of pipeline or network assets will be maintained by owners of the infrastructure.
Subject to further development and approvals, the STTM is expected to commence in June 2010, with a market trial set for March 2010. The existing retail gas markets in New South Wales and South Australia will operate in conjunction with the STTM in each state, and the Victorian wholesale gas market will continue to run in parallel with the emerging national gas market.
Most Australian gas markets are based on bilateral arrangements between producers, major users and retailers linked together through pipeline hubs connecting gas fields to gas consumers.
The exception is Victoria where a wholesale gas market was established in 1999 to enable competitive, dynamic trading based on injections into and withdrawals from the transmission system that links multiple producers, major users and retailers. The market was reviewed and, in 2003, four-hourly trading intervals introduced.