In FY2017 the Energy One group was joined by pypIT a business platform that is responsible for facilitating the transmission of 40% of Australia’s gas through pipelines. (This 40% figure is still quoted on the EOL website currently).
No break down in annual reports indicating revenue or growth. So it would seem to be a steady revenue stream in a fairly tightly held market with no obvious signs of growth other than through acquisition and expansion of the overall market. One would imagine that it is also sticky and unlikely to experience churn, disruption permitting.
The Gas market is expanding see below "Australia’s Gas-Fired Recovery Plan"
Dave Flower Product Manager 6yrs and 16 Yrs with Sydac Pty Ltd acquired in 2016 and BHP IT before that. Works out of the University of Adelaide integrating pypIT into the EOL suite of products.
pypIT acquisition ($1.50M) was financed entirely with cash reserves. One Limited completed the acquisition of the pypIT software business from Sydac Pty Limited on 25 August 2016 for the acquisition price of $1,500,000.
pypIT business continues to serve gas pipeliners and their customers in the evolving wholesale gas market, performing vital business transactions enabling users to effectively and efficiently transport gas.
For the operators of gas pipelines the need to receive trade orders from their customers is a mission-critical activity - as is the scheduling, messaging, reconciliation and settlement (billing) of those shipments. pypIT is the largest independent platform in Australia serving 40% of the country’s bulk gas transmission. As such it used by a number of Australia's blue-chip infrastructure companies.
pypIT is a business providing software and services to Australia’s major gas transmission gas pipelines. Australia’s major energy companies utilise gas transmission pipelines to fulfil their end use or retail gas supply requirements. The pypIT software allows customers of gas (gas shippers) to place order nominations onto the pipelines for the transmission of bulk gas, to have those nominations scheduled and to receive and settle invoices for transportation. It is used by major pipelines located in NSW, Victoria, SA and WA accounting for approximately 40% of Australia's domestic gas flows
Overview of gas markets. Detailed information here. East Coast and West Coast and Northern.
https://www.aemc.gov.au/energy-system/gas/gas-pipeline-register
Australia’s Gas-Fired Recovery Plan
The government’s Gas-Fired Recovery agenda supports energy reliability, security and affordability to stimulate Australia’s economic recovery, enable industry growth and support Australian jobs.
This plan focuses on 3 key action areas:
- unlocking gas supply
- ensuring efficient transportation
- empowering consumers.
The government committed $50.3 million in funding in the 2022-23 Budget under the Accelerating Priority Gas Infrastructure measure. This measure includes investment in:
- Seven infrastructure projects that support National Gas Infrastructure Priority (NGIP) priority actions, for early works support, and
- Feasibility studies and options for CO2-carrying pipelines from major gas and industrial hubs to prospective sites for carbon capture and storage.
This is in addition to the commitment of $58.6 million in funding in the 2021-22 Budget. The 2021-22 Budget measures were designed to enable our gas market to continue to accelerate Australia’s economic recovery and guarantee our competitive advantage in key industries. These measures included:
- The release of the National Gas Infrastructure Plan: Interim Report
- $38.7 million of early works support for critical gas infrastructure projects
- $3.5 million for the development of a long-term Future Gas Infrastructure Investment Framework
- $4.6 million to develop initiatives that empower gas reliant businesses to negotiate competitive outcomes, which includes developing a voluntary standardised contract framework with industry
- $6.2 million to design, consult and implement reforms to continue accelerating the development of Wallumbilla as Australia’s Gas Supply Hub
- $5.6 million to develop a further National Gas Infrastructure Plan for 2022.
https://www.energy.gov.au/government-priorities/energy-markets/gas-markets
Competitors
https://www.gastrading.com.au/about-us
Gas Trading Australia Pty Ltd (gasTrading) was established in 2007 to assist in the smooth and efficient operation of gas sale and purchase contracts. The increasing cost of natural gas, and the reduced flexibility of gas contracts, has made the management of these contracts a vital part of corporate planning for any company which uses natural gas.
Gas Trading Australia Pty Limited (“gasTrading”) has operated in the Western Australian market for over 10 years and is regarded as the premier gas supply manager in Western Australia, employs 12 expert staff members to manage the gas supply of its clients; has a large Perth presence and an established Melbourne office; has over 300 TJ/d of gas under management each day; provides Gas Supply Management Services to 30 clients across multiple States and Territories and across various industries including mining, power generation, manufacturing and gas production; manages gas supply on all Western Australian pipelines, the Amadeus Gas Pipeline, Northern Gas Pipeline and the Carpentaria Gas Pipeline; broad and diverse transport position in own right; and is the operator of the gasTrading Spot Market:
A need to manage the under and over supply positions of clients led gasTrading to develop a Spot Market. By offering a platform for the sale and purchase of natural gas between clients, potential win-win outcomes were realised. The gasTrading Spot Market has grown considerably since its inception in July 2009. Almost every shipper on the major pipelines in WA has now contracted in some way to use the gasTrading Spot Market.
- By the middle of each month, Sellers provide gasTrading with an indication of the gas volumes they anticipate they will have available for sale for the next month and the minimum price they will accept for that gas.
- gasTrading aggregates the volumes of gas available for sale and, in the middle of the month, sends to all interested parties an Invitation to Treat setting out the anticipated Available Gas for each day of the next month.
- Parties interested in purchasing gas in the next month are invited to respond to [email protected] with an Offer or Offers to Buy. Offers to Buy must specify a volume of gas, typically quoted in TJ/d, the days on which the gas is required and the price the Purchaser is willing to pay for the gas. Purchasers are encouraged to bid a price that reflects the ‘value’ of the gas to them
https://www.gastrading.com.au/spot-market/how-it-works
SGM Trading was founded by Brendan Dillon who has been operating within the East Coast Gas Market for over ten years and has an in-depth understanding of each of the markets and how they influence each other. We work with gas producers, retailers and industrial gas users to manage long and short gas positions on their gas supply or demand positions.