Announcing the NGL, Minister for Resources and Energy Martin Ferguson said “Natural gas is poised to play a growing and vital role in the Australian economy as we move to a carbon constrained market. We have to ensure that the much needed investment in new and existing gas infrastructure goes ahead. The National Gas Law delivers in this regard.”

The NGL is a cooperative legislative scheme regulating gas pipeline services throughout Australia. The NGL was developed with the cooperation of the Commonwealth, state and territory governments through the Ministerial Council on Energy (MCE). It implements recommendations made by the Productivity Commission in June 2004.

Under the new law, the Australian Energy Regulator (AER) is the national regulator for gas and electricity networks and the Australian Energy Market Commission (AEMC) is responsible for developing rules made under both the National Gas and Electricity Laws. Minister Ferguson said that this will ensure consistent regulatory decision making across the energy sector and ensures that there is a common approach to the development of rules governing gas and electricity networks.

Minister Ferguson said the reform has long term benefits for the Australian economy, both through lower carbon energy supplies and a reduced regulatory burden for suppliers, including ensuring investment in gas infrastructure.

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"The NGL also significantly enhances the regulatory environment for gas pipeline services. The introduction of a new set of pricing rules will ensure a more consistent approach to pipeline regulation and ensure the AER's decisions encourage efficient use of natural gas pipeline services."

The NGL is set to continue the incentives for greenfields pipeline development. It also introduces a new light-handed form of regulation that will reduce the regulatory burden for eligible pipelines.

The NGL also implements the Bulletin Board, a reform developed by the Gas Market Leaders Group. The new Bulletin Board will make information about the supply of natural gas publicly available.