2. Project Justification and Feasible Alternatives

Transcription

1 2. Project Justification and Feasible Alternatives 2.1 Project Justification Energy intensive industries associated with the coal and gas sectors in the Surat region continue to drive electricity demand in South Queensland. Coal mining, liquid natural gas (LNG), coal-seam methane exploration and production as well as power generation from coal and gas are proposed in the Surat basin over the next five years. There are numerous key industry proponents in the region currently developing infrastructure for various energy industries. These include APLNG, Santos (particularly with reference to the GLNG Project), Xstrata Coal Queensland Pty Ltd, Queensland Gas Company and Origin Energy. Current forecasts show a combined future demand of electricity of approximately 1000 MW in the Columboola-Wandoan area by 2023 (Powerlink, 2013). Santos GLNG is the major proponent of the GLNG Project, converting coal seam gas (CSG) to liquefied natural gas (LNG). The project includes gas fields, gas processing facilities, and pipelines to a LNG plant on Curtis Island, Gladstone. Gas fields are being developed in a number of locations including Fairview, approximately 54 km east north-east of Injune, and Fairview South 44 km north-east of Injune. Each gas field requires a gas hub compressor station as part of the overall infrastructure for the project. These gas hub compressor stations require a reliable high voltage electricity supply for their operation. Activities associated with CSG exploration and extraction will continue to expand over the next five years and reliability of a high voltage electricity supply is essential to the industry. To meet the requirements for these gas hub compressor stations and the overall increasing demands of the region, Powerlink has been requested by Santos GLNG to provide a high voltage connection to the gas hub compressor stations and associated substations. These connections will support the future operational electricity demand of Santos GLNG gas hub compressor stations under a standard customer connection arrangement. In particular for this project Powerlink has been requested by Santos GLNG to provide high voltage connections between Powerlink s proposed Eurombah Substation to proposed substations at Fairview and Fairview South. These substations are to service the gas hub compressor stations in these localities and require high voltage connections from the Eurombah Substation to these substations. The proposed transmission line connections are integral to the operations of the gas hub compressor stations as there are no other sources of electrical supply, including the Ergon network or local power stations, with sufficient capacity available. Gas field developments of such considerable regional significance cannot proceed if power is unavailable, with negative economic implications for the gas supply companies and their employees and local, state and national economies. The proposed high voltage transmission line connection (and other project connections) will ensure that customers receive continuous reliable electricity supply in accordance with Powerlink s obligations. Under the Electricity Act 1994, Chapter 5 of the National Electricity Rules and the terms of their Transmission Licence, Powerlink is required to use its best endeavours to negotiate an access agreement with the customers proposing connection to the transmission grid. Under the access agreement being negotiated, Powerlink will acquire the easements, obtain the necessary approvals, and construct, own and operate the proposed transmission lines. 7

2 2.2 Feasible Alternatives Do Nothing Option Not proceeding with the gas development projects due to failure to provide the necessary high voltage electricity supply may have economic consequences including a downturn / loss of operations and / or delays to development / expansion. This may impact Queensland s economic benefits from the extractive resource industry in the region Local Generation Option Connecting to a high voltage supply sourced from the grid for the gas compression facilities has a range of benefits compared with locally generated electricity installed by Santos GLNG: Utilises highly efficient grid generation which will minimise gas emissions; Minimises environmental impacts of generation plant (such as noise, air emissions, waste disposal) compared with local generation; Provide flexibility to meet changing load profiles and provide back up for generation outage conditions; Avoid the high cost of generation operations and maintenance in remote areas; and Remote generation would still require transmission interconnection between extraction and compression load centres. Given the above reasons, Santos GLNG has chosen to proceed with electricity supply from the grid Alternative Corridors and Preliminary Alignments A corridor and preliminary alignment selection process was undertaken in 2011, which was documented in a CSR and PAR, the report can be found in Appendix C of this EIS. The process involved in identifying the corridors and preliminary alignment for the purposes of this EIS was an iterative process which was undertaken in accordance with the following guidelines and planning instruments: Powerlink s Internal Guidelines for Route Alignment (Powerlink 2004); State Planning Policies and other regional planning instruments; Schedule 2 and Schedule 5 in the CID Guidelines (DLGPSR 2006); and Any applicable local government planning overlays. A summary of the corridor selection and preliminary alignment process is provided in the following paragraphs. Corridor Selection The original TOR for the CSR included identifying a suitable study corridor and preliminary alignment for high voltage transmission lines to the Fairview and Fairview South gas fields via a direct connection from the proposed Powerlink Yuleba North Substation some 35 km further south-east than the proposed Eurombah Substation. In the initial phases of the CSR the Eurombah gas field (which is an APLNG Project) was not a consideration for this this project. The study area thus encompassed the entire area between Yuleba North and Fairview F05 (the most northernmost of the two gas hub compressor stations). 8

3 An initial assessment of the study area was undertaken between Yuleba North Substation to Fairview South Substation and three potential corridors were identified (known as Corridor F, G and H). All corridors originated from a common corridor north west from the Yuleba North Substation, passing southwest of the Norwood Coal Mine and Xstrata Wandoan #2 Extended mining lease (ML) and extending 23 km to a point just north of the Roma Taroom Road. Corridor G was the most practical, being an almost straight line connection to Fairview South. At the junction mentioned, Corridor G continued north-west from the substation for 13 km to a bend point 4.5 km west of the Clifford Yuleba Road where the corridor assumes a north, north-west bearing for 50 km in an almost straight line to and the Fairview South substation within the one corridor. Corridor G to Fairview South was 62 km long. At that junction Corridor F trended due north, to pass to the east of Spring Gully and Stephenton State Forest, and approach Fairview South directly from the east. This corridor avoided the intensively developed Eurombah Creek gas fields (APLNG) and also avoided extensive heavily forested areas on moderate to steep topography. Corridor H teed off from the common junction for all corridor options near the Roma Taroom Road and trended generally north-west for 50 km to pass to the south and west of Hallett State Forest. West of Hallett State Forest this corridor then turned sharply eastwards for 15 km to reach the Fairview South substation. Similarly this avoided densely forested areas and moderate to steep topography but did intersect the Eurombah Creek gas field. During the assessment of corridor options APLNG approached Powerlink with a request for a high voltage connection to their gas hub compressor station proposed for the Eurombah gas field. The proposed connection point was located directly within Corridor G, as identified in the CSR. Subsequently owing to the practicalities of the positioning of the Eurombah gas hub compressor station (with respect to connections further north to Fairview and Fairview South) Corridor G was recommended as the study corridor. The study corridor between Fairview South and Fairview was determined by the need to avoid or minimise impacts on Beilba State Forest and Expedition (limited depth) National Park, the practicalities of rugged terrain (characterised by plateaus and the deep gorges of Hutton Creek and Dawson River and tributaries) and to minimise potential impacts on gas field well development. This resulted in the adoption of the continued extension of Corridor G as the study corridor between Fairview South and Fairview. 9

4 Preliminary Alignment The purpose of the preliminary alignment is to provide a nominal alignment for the transmission line that will provide a basis for investigations for future studies and landholder consultation (i.e. this EIS). On approval of the CSR and PAR, the nominated preliminary alignments becomes the study alignment for the purposes of further investigations. The final alignment may vary according to the outcomes of the community consultation and field investigations as part of the findings of any further studies. Eurombah Substation to Fairview South Only one study corridor (Corridor G) was considered feasible owing to the location of the Eurombah Substation some 24 km to the south-east. This corridor includes the only gap between the Hallett State Forest and Stephenton State Forest. A preliminary alignment was chosen that utilised the gap between the State Forests to minimise potential impacts on the State Wildlife Corridor that is mapped over much of the study corridor in this locality. Regardless of alignments considered, all would intersect the State Wildlife Corridor and the preliminary alignment chosen as the basis of further study presented more opportunities to mitigate impacts on this State interest feature than other options. This alignment may also enable construction to take advantage of the topography to allow longer (and higher spans) to lessen the impact on the State Wildlife Corridor habitat areas north of the upper Eurombah Creek catchment. Fairview South Substation to Fairview Substation The corridor between the Fairview South and Fairview Substations was a logical extension of Corridor G (Eurombah Substation to the Fairview South Substation). The preliminary alignment had to consider a number of issues relevant to the construction and operation of a transmission line in this corridor. The key issues affecting the identification of the preliminary alignment included: Extremely variable topography, with steep sided plateaus and deep gorges with many areas of recorded cultural heritage significance; With reference to the above, specifically avoiding the Dawson River which is an area of known cultural heritage significance; Highly erosive escarpments; Intensive gas field development; Generally limit the areas of natural vegetation within the corridor to minimise impacts on habitats of protected fauna/flora, particularly the State Wildlife Corridor along the Dawson River/Hutton Creek valleys choosing a preliminary alignment with the least number of water course crossings; and Areas of endangered vegetation, much of it listed as a Threatened Ecological Community (TEC) under the Regulation to the Commonwealth EPBC Act. To the greatest extent possible the preliminary alignment has sought to maximise separation distances from known wells either under construction or in operation. 2.3 Alternations Post CSR / PAR The study corridors and preliminary alignment presented formed the basis for initial consultation with landholders and other stakeholders. Following consultation during the course of the EIS the preliminary alignment has been altered as a result. Key determinants in the finalisation of the preliminary alignments (which form the basis of the final alignments for this report) include: 10

5 The revised locations of the Substations. Santos GLNG connection points at their gas hub compressor stations. Due to gas hub compressor station layout changes, the ultimate connection point for the transmission lines from Fairview South Substation and Fairview Substation have altered. Minimising the impact of transmission lines on endangered regional ecosystems (RE) and TEC, particularly in relation to the Fairview South to Fairview final alignment. Minimising (where possible) the construction implications associated with the topographical constraints of the area. Maintaining safe separation distances between the high voltage transmission lines and gas well operations. Santos GLNG subsequently provided a spatial dataset of the current and proposed gas well locations which were used as the basis for alterations of the preliminary alignment to form the final alignments for this project. Landholder and stakeholder concerns, in particular the location of local landing strips. The modified preliminary alignments have formed the basis for the final alignments as shown in Figure Ecologically Sustainable Development Ecologically Sustainable Development (ESD) is a fundamental development principle that Powerlink is committed to, ensuring that their major network projects are aligned with ESD principles. Powerlink wants to ensure that sufficient and clear scientific information is provided in their EIA so the performance of proposals can be assessed against ESD principles and objectives. The following sections outline the overarching principles and framework for ESD in state and federal policy and then apply these to this project and Powerlink s roles and operations. Since planning approval for this project is through CID (refer to Section 1.3 of this EIS for further detail), consideration needs to be given to ESD as outlined in SPA in addition to the National Strategy for Ecologically Sustainable Development (1992). Chapter 5, Part 1, Section 201 of the SPA, in relation to CID, states: Land may be designated for community infrastructure only if the minister of local government is satisfied the community infrastructure will (a) Facilitate the implementation of legislation and policies about environmental protection of ecological sustainability; or State Strategy for Ecologically Sustainable Development Australia's National Strategy for Ecologically Sustainable Development (1992) defines ESD as: a) Protection of ecological processes and natural systems at local, regional, state and wider levels; b) Economic development; and c) Maintenance of the cultural, economic, physical and social wellbeing of people and communities. 11

6 The purpose of the SPA (Chapter 1, Part 2, Section 3) is to: The purpose of this Act is to seek to achieve ecological sustainability by (a) managing the process by which development takes place, including ensuring the process is accountable, effective and efficient and delivers sustainable outcomes; and (b) managing the effects of development on the environment, including managing the use of premises; and (c) continuing the coordination and integration of planning at the local, regional and State levels. To achieve the purposes of the Act to achieve ecological sustainability Chapter 1 Part 2 Section 5(1) of the SPA outlines the criteria for advancing the Act: (a) ensuring decision-making processes (i) are accountable, coordinated, effective and efficient; and (ii) take account of short and long-term environmental effects of development at local, regional, State and wider levels, including, for example, the effects of development on climate change; and (iii) apply the precautionary principle; and (iv) seek to provide for equity between present and future generations; and (b) ensuring the sustainable use of renewable natural resources and the prudent use of nonrenewable natural resources by, for example, considering alternatives to the use of non-renewable natural resources; and (c) avoiding, if practicable, or otherwise lessening, adverse environmental effects of development, including, for example (i) climate change and urban congestion; and (ii) adverse effects on human health; and (d) considering housing choice and diversity, and economic diversity; and (e) supplying infrastructure in a coordinated, efficient and orderly way, including encouraging urban development in areas where adequate infrastructure exists or can be provided efficiently; and (f) applying standards of amenity, conservation, energy, health and safety in the built environment that are cost-effective and for the public benefit; and (g) providing opportunities for community involvement in decision making. 12

7 2.4.2 The National Strategy In 1990 the Commonwealth Government suggested the following definition of ESD in Australia: 'Using, conserving and enhancing the community's resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased'. The development of a Commonwealth strategy for ESD demonstrated that a coordinated approach was needed to address the issues that ESD seeks to act upon. The goal of the National Strategy for ESD is: Development that improves the total quality of life, both now and in the future, in a way that maintains the ecological processes on which life depends. The core objectives of the Strategy are: to enhance individual and community well-being and welfare by following a path of economic development that safeguards the welfare of future generations; to provide for equity within and between generations; and to protect biological diversity and maintain essential ecological processes and life-support systems. This Commonwealth strategy drove the change in Australia to recognise ESD at a state level as demonstrated in the SPA Ecologically Sustainable Development and the Project The ESD has been a consideration throughout all phases of the project. Ecological sustainability is considered from project inception, planning, during detailed environmental assessments and preparing the EIS. In addition to the project planning stages, ESD is incorporated into mitigation measures for construction, operations and decommissioning of the project. In effect the overarching objectives of ESD are incorporated throughout the life cycle of the project and all studies which have been undertaken support the fundamental principles of ESD. 13