Bowen Li
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Geographical market refers to the market that organized by geographical division. Australia is using long-term contracts to trade gas. There are three regions of gas production that use separated by pipeline that supplies them: eastern gas region, western gas region and northern gas region. Australia is termed by fact as the global gas industry. 23% of the world’s natural gas was produced by Australia, and it is expected that it will keep increasing in the future.
Between two producers Santos and Sagasco in Australia, Santos argued that the gas industry was as it is highly concentrated and was always disciplined by competition from all other fuels. But Sagasco thinks the merger would reduce the market competition