ACCC authorises sale of LPG - Breaking News - Business - Breaking News

Woodside Petroleum and its joint venture partners at the advanced Otway gas project will be able to jointly market the gas, with the competition watchdog giving the final okay to the arrangement.

The Australian Competition and Consumer Commission (ACCC) granted authorisation to Woodside Energy Ltd, Benaris International Pty Ltd and CalEnergy Gas (Australia) Ltd for three years to jointly market and sell the liquefied petroleum gas (LPG) produced by the project.

The project, off the coast of Victoria, is a joint venture between the applicants and Origin Energy Ltd.

The decision follows a draft determination issued in February.

ACCC chairman Graeme Samuel said the regulator considered that without authorisation, Benaris and CalEnergy were likely to sell their LPG entitlements to Woodside or Origin, noting the higher cost of marketing small volumes of LPG.

He said the separate marketing of Origin's LPG and the competitive constraint provided by LPG producers from other gas fields and refineries would limit any anti-competitive detriment by the proposed arrangement.

"The ACCC is satisfied that any detriment will be outweighed by benefit in the form of cost savings to Benaris and CalEnergy."

© 2006 AAP
\nBrought to you by