Northern Gas Pipeline Community and Business Information

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1 Northern Gas Pipeline Community and Business Information December 2015

2 About Jemena One of Australia s leading, experienced & innovative energy infrastructure companies $8.5B of Australian infrastructure assets 2

3 About Jemena Jemena Gas Network Jemena Electricity Network Eastern Gas Pipeline Jemena s NGP 10 Queensland Gas Pipeline Colongra Gas Transmission and Storage Pipeline VicHub ActewAGL Distribution Partnership (50%) United Energy Distribution (34%) Rosehill Recycled Water Gas 3 Electricity Water 10 NGP Northern Gas Pipeline Supporting the needs of Australians every day

4 Jemena s NGP Route! NGP Pipeline 623 km, 14 inch, AS2885 gas transmission pipeline. 4

5 NGP Facilities! Phillip Creek Compressor Station 2 Taurus 60 Compressor Station Site with inlet metering and potential nitrogen separation skid (TBC). Located at Tennant Creek end.! Midline Main Line Valves, CP Stations and Scraper Station.! Mt Isa Compressor Station 2 Taurus 60 Compressor Station Site with offtake meter station. 5

6 Jemena s Vision Linking Mt Isa to Wallumbilla " Improve reliability of the gas transmission network " Increase competition " Reduce reliance on Moomba " Supporting growth of the NT gas sector. 6

7 Jemena s Project Team 1. Jemena s Project Experience with a proven track record of delivering projects under budget & on schedule 2. Jemena s O&M practices have driven high service availability and reliability 3. McConnell Dowell Constructor the most experienced for the job 4. EcOz Environmental Territory based experience 5. Circle Advisory Industry participation and indigenous engagement - with significant, long term northern Australian experience 6. Maloney Field Services Land access & valuation a strong market reputation with over 40 years experience 7

8 Jemena s Project Team 7. KBR Facility Designer proven, experienced compressor station and gas facility designer 8. GPA Engineering Pipeline Designer proven, experienced AS2885 pipeline designer 9. MRC Global Coated Linepipe Supplier recent Australian experience of similar pipe supply 8

9 Target Project Timeline Project Delivery Phases Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q NT Govt Tender Process Consultation Approvals Community & Business Approvals Consultation Design Long Lead Procurement Short Lead Procurement Offsite Fabrication Pipeline Construction NT Govt Project Award Design Long Lead Procurement Short Lead Procurement Offsite Fabrication Construction Compressor Construction Construction Commissioning Operations & Maintenance Commissioning Operations & Maintenance 9

10 Our approach to the NGP Project 1. Leverage 2. Optimise 3. Minimise 4. Maximise off existing strong customer relationships to contract full utilisation of the NGP route and design to achieve lowest construction capital cost and ongoing O&M cost construction risks through route refinement & good works planning NT and Qld participation, particularly indigenous and from the Barkly and Mt Isa regions 10

11 Local Content Project analysis vs NT / western Qld capacity study and gap analysis what does the project need vs what exists and how can the gap be filled? Goods, services and labour pursue local content through internal policy and contractual requirements cascaded to contractors. Industry Capability Network ICN Gateway page and all packages and winning bidders will be posted. Industry participation plan we will go beyond historical norms in local opportunity facilitation and give preference to local content from the regions, then from the NT and western Queensland. 11

12 Project and Operations Opportunities Procurement Opportunities Local fabrication, supply of equipment and other materials where services available. Construction Support Contract works for Jemena and McConnell Dowell and direct labour hire into the construction team. O&M Support Contracts 12

13 Local Content Targets 13 We ve engaged extensively to develop strong but achievable commitments to Northern Territory and Mount Isa region employment and content. During planning, construction and commissioning: Up to 600 jobs Up to 100 contracts worth around $112 million During operations: 30 jobs 11 contracts worth $500k per annum And within these commitments, at least 162 jobs and 56 contracts for Indigenous people and businesses.

14 Jemena Prequalification Requirements " " " " " Demonstrated experience in similar work scopes Australian / local good references Cost competitiveness Robust HSEQ systems and processes Ability to negotiate commercial terms and conditions Refer to the packages on the ICN Gateway portal when available to see more specific requirements 14

15 Capacity building for local participation Practical and real initiatives for local involvement To underpin our local content effort 15

16 Small to Medium Enterprise Business Growth Program SME Business Investment Fund 16 And Regional Roadshow & Procurement Workshops

17 Regional Employment Plan 17

18 Regional Employment Plan Existing Labour Market Direct Employment Project Employment Existing Employment Service Providers Regional Roadshow and Recruitment Campaign Project Ready Training Program Tennant Creek Social Business Enterprise Phase 1 Jemena Talent Pool: Planning Construction Operations Tennant Creek Social Business Enterprise Phase 2 Planning Construction Operations 18

19 Tennant Creek Social Business Enterprise 19

20 Remote Community Social Investment Program Remote community social and economic development through a social investment program comprising: Remote Community Appropriate Technology (RCAT) Investment Program during the Construction Phase; and Investment in Community Social Programs during the Operations Phase. Potential investments include: Provision of mobile hotspot technology. Telehealth technology. 20 Critically, such programs must arise from consultation with the communities about their needs and aspirations ahead of making specific commitments.

21 Local content implementation Dedicated IPP team Darwin Project Office Construction Field Offices Operations offices at Tennant Creek and Mount Isa Local content contractual provisions for all first and second tier contractors ICN Gateway for all project packages, advertising and outcomes 21

22 Key Jemena Objectives for NGP 22

23 Expressions of Interest 23