Gas Balancing Disputes and Lost Production
Definition
Gas balancing agreements require complex ongoing accounting for cumulative over/under-production. Disputes, especially between operators and minor equity holders, exacerbate imbalances, leading to unrecovered equity shares and capacity downtime.
Key Findings
- Financial Impact: 2-5% annual revenue loss from idle equipment and lost sales (equivalent to AUD 1M+ for mid-sized fields)
- Frequency: Periodic (monthly/quarterly) until end-of-field life
- Root Cause: Bottlenecks in manual allocation/nomination processes, lack of visibility into reserves, JOA-balancing inconsistencies
Why This Matters
The Pitch: Natural gas co-owners in Australia lose 5-10% capacity annually from balancing disputes. Automation of imbalance accounting prevents lost sales due to queues and idle fields.
Affected Stakeholders
Joint Venture Operators, Co-owners/Producers, Under-producers
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Evidence Sources:
Related Business Risks
STTM Deviation Settlement Imbalances
Imbalance Settlement Shortfall Charges
Environmental Protection Licence Non-Compliance Fines
NOPSEMA Environment Plan Approval Delays
EIS and Site-Specific EA Application Costs
ATO GST Reporting Penalties for NGL Fractionation
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