Ash It depends on the contract. If CTP sells its gas at...

Ash

It depends on the contract.

If CTP sells its gas at Mereenie, the buyer is responsible for paying the pipeline tariff to the exit point and therefore the gas is the buyers gas once it is metered at Mereenie.

This is common as the gas producers don't want the risk and hassle of the transportation.

On the other hand, a buyer may want the gas delivered at point X and will, therefore, contract gas at a price delivered at X. In this case, it means that the gas producer bears the risk and cost of transportation.

In my experience, most buyers will purchase at the gas plant exit flange and undertake the transportation. If they are transporting large volumes of gas thru multiple contracts, they may also get a cheaper tariff across the system, which can then be to their benefit.

I hope that helps.