Opening of major expansion of eastern Australian gas grid by AGL Energy and Epic Energy
11 May 2009
THE final link between the Queensland, South Australian and New South Wales gas markets was opened today with the official launch by AGL Energy Limited (AGL) and Epic Energy (Epic) of two new gas pipelines and compression facilities in Queensland.
The 180km, 400mm high-pressure gas pipeline known as the QSN (Queensland - South Australia - New South Wales) Link, constructed by Epic, has long been the missing link in the eastern Australian gas transmission system. The QSN Link will transport gas from the Wallumbilla gas hub through Epic’s South West Queensland Pipeline (SWQP) to connect with the Moomba-Adelaide Pipeline (MAP) System and the Moomba-Sydney Pipeline (MSP). Epic has also significantly expanded the capacity of the SWQP by constructing a mid-line compressor facility near Cooladdi.
A second pipeline, the 113km, 400mm Berwyndale to Wallumbilla gas pipeline (BWP), has been commissioned by AGL to transport gas from a point approximately 8.5km east of Miles near the Condamine Power Station to the Wallumbilla gas hub.
AGL also designed and built the Wallumbilla Compressor Station for Epic to allow AGL’s Berwyndale gas to enter the high pressure SWQP. AGL worked closely with Epic to integrate this asset into Epic’s existing Wallumbilla gas hub. AGL will now sell the compressor station to Epic and will be provided with a long-term gas compression service by Epic. AGL will now prepare the BWP for sale to a third party supported by a long-term gas transportation contract.
All projects were completed with no lost time injuries and no environmental incidents.
The new facilities were launched at an official function at Wallumbilla, near Roma, attended by South Australia’s Minister for Transport, Infrastructure and Energy, the Honourable Patrick Conlon, and Queensland’s Parliamentary Secretary to the Minister for Natural Resources, Water and Energy, Michael Choi MP.
AGL Managing Director Michael Fraser said: "The completion of the Berwyndale to Wallumbilla Pipeline and the QSN Link means we now have an interconnected eastern Australia pipeline network that will provide a level of security of gas supply to AGL customers in New South Wales and South Australia. This project demonstrates AGL’s willingness to sponsor, invest and then on-sell energy assets which is entirely consistent with our integrated energy strategy."
Epic Managing Director Steve Banning said: “Epic is pleased to have completed the construction of the QSN Link and expansion of the South West Queensland Pipeline on time and within budget and with zero lost time incidents.”
Epic entered into a long-term foundation shipper agreement with AGL on 13 July 2007 which underpinned the development of the QSN link and expansion of the SWQP. In addition, AGL has committed to a further expansion of the SWQP (stage 2 expansion) by no later than January 2013.
“With the development of the QSN link, Epic has created a new strategically important high pressure gas transmission backbone extending for 1716 km from Wallumbilla through to Adelaide. Connections to other pipelines will allow for the supply of gas to markets in Brisbane, Gladstone, Mt Isa and Sydney,” Mr Banning said.
In December 2006, AGL entered into a 20-year gas sales agreement with QGC, now a BG Group company, for the purchase of up to 740PJ of gas. The construction of the BWP and the QSN link means that gas from Queensland can now be transported directly to AGL’s key southern markets through the MSP and the MAP.
"The Berwyndale to Wallumbilla Pipeline will provide the optimum long-term commercial outcome for AGL to transport QGC gas to access Queensland and southern markets,” Mr Fraser said.
"The Berwyndale to Wallumbilla Pipeline will provide a long-term gas transportation solution for AGL to support the QGC contract over the period 2009 to 2027.
"It will also provide AGL with significant flexibility and options over future capacity, including access to gas parking and gas lending services. This development also showcases AGL’s commitment to Queensland and demonstrates that this is a key market for us moving forward,” Mr Fraser concluded.
Further inquiries:
Nathan Vass
Senior Media Adviser
02 9921 2264
0405 040 133
nvass@agl.com.au
About AGL
AGL is Australia’s largest integrated renewable energy company and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest retail energy and dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread cross traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking o further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.
About Epic Energy
Epic Energy is one of Australia's largest gas transmission companies. It is the owner /operator of the Moomba to Adelaide Pipeline System and the South-east (Katnook) Pipeline System in South Australia, the Pilbara Energy Pipeline in Western Australia and the South West Queensland Pipeline and QSN Link Pipeline in Queensland.
Epic Energy is wholly owned by Hastings Diversified Utilities Fund.
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