The Australian Competition and Consumer Commission today accepted court enforceable undertakings from BHP Billiton Petroleum (Bass Strait) Pty Ltd (BHP) and Esso Australia Resources Pty Ltd (Esso) to separately market their share of gas produced under the Gippsland Basin Joint Venture (GBJV) from 1 January 2019. The separate marketing of GBJV gas means buyers will have access to competing offers from Esso and BHP in the future.

The ACCC was investigating the joint marketing arrangements between BHP and Esso as it was concerned that the arrangements were likely to have resulted in a substantial lessening of competition in the market for the supply of gas to buyers in the Southern states.

Frontier Economics provided a report to Esso and BHP on the likely effects of the joint marketing arrangement on competition, which was provided to the ACCC to assist in their inquiry.

Frontier Economics regularly advises clients in a range of competition matters.

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