Currently the pipeline is subject to the National Gas Access code and the 1994 Goldfields Gas Pipeline State Agreement, although the owners, Duke Energy, CMS Energy and Australian Pipeline Trust, are arguing that the pipeline should be under the sole jurisdiction of the State Agreement.

However, the NCC yesterday recommended that the GGT remain under the national code and be policed by the WA independent regulator, claiming that the 1994 State Agreement did not stop the owners from overcharging for transmission or third-party access.

"We are very disappointed that the NCC hasn't balanced the interests of users of the pipeline with owners of the pipeline. The Gas Code is not working for pipeline owners throughout Australia, as recognised by the Productivity Commission review," said GGT general manager David King.

King maintained that if the pipeline was no longer regulated by the Gas Code, it would remain regulated under the Goldfields Gas Pipeline State Agreement.

"It is only because of the State Agreement that the GGT was built and continues to be expanded today. It would not have been built under the code as it is currently interpreted, and is less likely to expand in the future under the Code."

State Energy Minister Eric Ripper now has 21 days to decide whether to accept the recommendations of the NCC.

Duke Energy has already puts its Australian assets, including the 12% stake in the GGT, up for sale while CMS is thought to be sourcing potential buyers for its assets, which include a 39.8% interest in the GGT.