The Gas Act provides for regulations to be made for the purpose of 'providing for the establishment and operation of wholesale markets for gas, including for (i) protocols and standards for reconciling and balancing gas; and (ii) clearing, setting, and reconciling market transactions'. In addition, an outcome of the 2008 Government Policy Statement on Gas Governance (GPS) is the enabling of '... accurate, efficient, and timely arrangements for the allocation and reconciliation of upstream gas quantities'.
Upstream reconciliation/title tracking is the name given to the process of transferring legal title, or ownership to a tranche of gas.
The objective of the project is to consider whether the arrangements for upstream reconciliation/title tracking are fair and efficient and, if not, to recommend alternative arrangements. Specific objectives are to identify issues related to upstream reconciliation/title tracking, and, if necessary, to describe and evaluate reasonably practicable options for addressing the issues.
This project is on hold as it is closely linked to the development of the transmission balancing work stream. Once the direction for transmission balancing is better known, it will be possible to develop the upstream reconciliation/title tracking project with greater certainty.
In November 2015, Gas Industry Co published a Gas Reconciliation Requirements and Procedures document which provides an overview of the upstream and downstream reconciliation arrangements, including the key legislative and commercial documents. The document explains how physical flows and commercial transactions in the gas supply chain are reconciled and how the energy quantities used in each commercial transaction are derived.
The Gas Reconciliation Requirements and Procedures document can be found here.