Each participant must adhere to the affiliation agreement and agree to be bound by the rules and conditions of sale related to it. In developing the market design, AEMO has shown leniency on gas nodes and gas exchanges in the US and THE EU. While the design of the Wallumbilla Gas Exchange incorporates some of the characteristics of these facilities, it necessarily reflects the underlying gas market and regulatory environment in Australia. For example, unlike some EU gas exchanges, the stock exchange operator does not ensure that nominations are registered for supply and there is no clearing mechanism in the underlying gas market to deal with supply fluctuations. So far, the Exchange does not offer lifting services (such as compression or storage) that are offered at other hubs, usually gas carriers, and that support trading and liquidity.1 After the gas is allocated, which is outside the scope of the stock exchange rules, participants report the quantities delivered to the exchange operator. Delivery discrepancies are paid upon invoicing with a 25% discount or an increase in the transaction price or a market price to which the waiver applies. The new Supply Hub is flexible in its design, as new sites and products can be added to meet the needs of the industry. It is different from mandatory demand markets, which typically cover a given distribution area and are designed primarily to reconcile gas supply and demand. Queensland`s recommendation was forwarded to the Permanent Energy and Resources Council, which in turn asked AEMO to assess the feasibility of a gas supply centre and then develop the gas trading exchange. AEMO worked closely with gas Supply Hub Reference Group, made up of gas producers, shippers, users and carriers. This figure is a summary of the monthly volume of trade and prices charged in the gas supply centre. At the beginning of the market, all products traded through the Exchange will be destined for the physical supply of gas. The Exchange includes a capacity list service, but these transactions must be traded and processed bilaterally4 Once the current model is well established, it is possible to develop supply centers in other regions.
Supply centers have performed well in the United States and Europe; improve commercial liquidity, open secondary markets, allow third parties access to storage capacity and facilities, set futures price curves and increase transparency of information to support efficient market outcomes. National legislation requires the AEMO to conclude the exchange agreement which contains the material rights and obligations of the operators. It is a multilateral agreement to which the stock exchange operator and all those who sign accession agreements are parties. The agreement defines the process of participation in and access to the electronic stock exchange platform, trading agreements, prudential requirements, the conclusion of transactions and delivery and settlement obligations. An agreement facilitating the physical supply of gas to a delivery point other than the one indicated in the exchange. The hub will introduce standardised conditions as part of an exchange agreement developed by market participants. . . .