markets | Australia


Table 4: Gas pipelines currently under construction in Australia Project


Regions


Eastern Goldfields Pipeline Moomba Sydney Pipeline


Ichthys Darwin LNG pipeline


Western Australia South Australia -


New South Wales Northern Territories Ichthys gas field to Darwin LNG Prelude gas gathering pipelines Western Australia Roma Brisbane Pipeline Queensland


Victorian Transmission System Victoria - New South Wales


Subsea gas gathering pipeline


in the Prelude gas field designed to deliver gas to floating LNG plant


10% capacity expansion Southern and northern section


capacity expansion - $600m project to allow flow between states


Source: APA Group, Origin Energy, Shell, Australian Energy Regulator


Table 5: Planned pipeline projects Eastern Gas Pipeline


Browse FLNG Narrabri project to Tamworth


Victoria – New South Wales


Western Australia New South Wales


A$150m expansion project leading to 20% capacity expansion


Subsea gas gathering pipeline network in the Browse offshore gas field to deliver gas to a floating LNG plant


200km long pipeline to transport gas from Santos’ proposed $2bn Narrabri project to Tamworth, joining existing APA pipeline gid


Northern Territories Pipeline Link Northern Territories - 1100km pipeline from Alice Springs to Queensland


Source: APA Group, Origin Energy, Shell, Australian Energy Regulator


projects located on Curtis Island in Queensland have had to top-up their gas supplies from natural gas fields as far afield as the Bass Straits, between the states of Victoria and Tasmania. This has required natural gas to be transported over 2,000km of pipeline. In addition, various gas power station operators have


found it more lucrative to close down their gas power stations and switch to coal power generation, in order to resell their allocations to CSG LNG operators. This has resulted in higher gas prices for domestic customers. The competition for gas by Queensland’s CSG export plants has led to increasingly strident calls from politicians within the New South Wales Labour Party, and from an Industry Group representing industrial and commercial gas users, for a certain volume of gas to be reserved to meet the state’s needs at an affordable price. Pipeline operators in Queensland have responded to


domestic users’ concerns that rising exports from the Curtis Island LNG plant will raise prices for domestic users. For instance, APA Trust is upgrading its NSW- Victoria gas interconnector in order to bring more gas from the Bass Straits gas fields northwards to NSW and


16 PIPELINE COATING | September 2015


Queensland. In addition, Jemena has announced a $150m expansion project starting in 2016 to upgrade capacity by 20% on its Eastern Gas Pipeline, which runs up the east coast from Esso’s Longford plant in Victoria to Sydney in NSW where it connects with other pipelines.


Conclusion The era of mega-long distance pipeline construction in Australia is over for the time being. It seems unlikely the country will escape the reduction of between 15% and 20% in global exploration and production spending. This spend reduction will inevitably “percolate down the value chain,” according to Jason Waldie, Associate Director at Douglas-Westwood. In addition, falling LNG prices alongside huge cost


overruns and a slow-down in new contracts has led investors to put more than a $100bn worth of new LNG projects on hold. Nevertheless, investment in short distance pipelines are needed and capacity enhance- ments are highly likely in order to satisfy domestic demand and will continue to help Australia on its path to become the world‘s leading LNG exporter.


www.pipeline-coating.com 2019-2021


Moomba. Major project status awarded. Seeking funding, three proposed routes


Start 2016 Final Investment Decision in H2 2016


Domestic Santos & APA Group


Domestic APA Group Domestic Jemena Export Woodside


2014-2016 2014-2016


Domestic Domestic


APA Group APA Group


2016


Project. The 882km pipeline is 42-inch diameter in concrete-coated steel


2013-2016 Export Shell Export INPEX


Details


New 292 km gas pipeline 20% capacity expansion


On-stream Purpose of project Lead investor 2015-2016 2014-2016


Domestic Domestic


APA Group APA Group


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