Several submissions already made to the commission support controls on the pricing and delivery of gas using the Maui pipeline - this country’s largest and longest single pipeline from Taranaki to Waikato.

Only Maui gas can contractually be transported in the pipeline owned by the Maui Development Ltd partners Shell NZ, Todd Energy and OMV - from Oaonui north to Rotowaro near Huntly. However, fair and open access for other gas, from such fields as Pohokura, is seen as vital to the future of the New Zealand energy scene.

NGC Holdings has booked a whole day (Monday) before the commission, while Contact Energy, Todd Energy subsidiary Nova Gas, Wanganui Gas, Greymouth Petroleum, and network companies Powerco and Vector, are each scheduled to take less time before the commission, along with the Major Electricity Users Group (MEUG).

Other companies - including majority NGC owner AGL, Mighty River Power, other Todd Energy companies, plus the Petroleum Association of New Zealand - have also made submissions but chosen not to present them personally.

The commission’s draft report found that NGC, Powerco and Vector were making “excess returns” on their pipeline operations and that price control should be imposed on these companies. However, AGL says that would “simply be bad economics”.

MRP says it’s vitally important for the future of the New Zealand gas industry that all pipelines which are not contestable be regulated to ensure fair and reasonable terms and conditions for access.

“Mighty River Power believes that reasonable prices, and transparency of those prices, for transmission and distribution systems are paramount for an effective gas industry. In this regard, it is particularly important that the prices and returns for delivery of gas on the Maui pipeline are regulated.

“The pipeline is the major transporter of gas from the Taranaki Basin and any market power in respect of the pipeline may restrict or delay investment in the exploration or production of petroleum, or worse divert investment expenditure away from New Zealand to elsewhere.”

MRP said non-contestable segments of the industry should, at the very least face a higher degree of oversight than contestable areas.

Contact also believed gas services supplied by MDL, NGC, Powerco, Vector, Wanganui Gas, and Nova Gas should be controlled.

However, there was general consensus that gas services supplied by the LTS pipeline (Kapuni to Waitara Valley); Kapuni to Hawera pipeline (Todd and Shell); and McKee production station to Faull Road (Todd) should not be controlled.

This also applied to the Rimu to NGC south pipeline; Waihapa to New Plymouth and TCC power stations (Swift Energy); and to the Surrey Road to NGC LTS Pipeline (Westech Energy).

The 3½-day conference opens in Wellington tomorrow and finishes next Wednesday.