A provisional decision not to impose tougher price regulation on the main pipeline that carries gas from Queensland to the south has given hope of increased supplies for the stretched gas market in Victoria and NSW.

Shares in APA Group, the owner of the South West Queensland Pipeline, rose as much as 6.1 per cent after the Australian Energy Regulator issued its draft findings that the benefits of subjecting the pipeline to full regulation on tariffs would not outweigh the increased costs involved. The stock closed 2.6 per cent higher at $7.59.