This paper investigates the impact of network interconnectivity on Australia's domestic gas prices by employing a long-term planning model underpinned by mathematical optimisation. At optimal system cost, improved network interconnectivity can provide material and sustained price reductions for the gas market with potential flow-on reductions to the electricity market. Increased connectivity is shown to deliver reductions of over $2/GJ in average gas prices across the eastern seaboard, with a subsequent reduction in electricity prices across all mainland National Electricity Market (NEM) regions.

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