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About the Short Term Trading Market (STTM)

The Short Term Trading Market (STTM) is a market-based wholesale gas balancing mechanism established at defined gas hubs in Sydney, Adelaide and Brisbane.

The market itself runs once a day, on the day ahead, for each hub. It uses bids, offers, and forecasts submitted by participants, and pipeline capacities, to determine schedules for deliveries from the pipelines which ship gas from producers to transmission users and the hubs. These hubs are nominally the low pressure networks in Adelaide and Sydney.

The market sets a daily market price at each hub and settles each hub based on the schedules and deviations from schedules. Participants' daily transactions (scheduled trades and unscheduled deviations or variations) are settled at market prices and billed regularly (monthly). Suitable credit management arrangements have been put in place to manage credit requirements.

AEMO operates the STTM but does not operate the physical pipeline or network assets.

For more information on the STTM, AEMO has developed:

STTM infographic
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