BOWEN BASIN MINING CLUB

Transcription

1 BOWEN BASIN MINING CLUB Robert McRuvie Local Content Team Lead Jason Manttan Local Content Advisor 26 September 2013

2 PRESENTATION OVERVIEW Company overview Operations update Doing business with Arrow Way forward 2

3 WHO IS ARROW? Vision Arrow Energy will be a highly respected, integrated coal seam gas (CSG) company, safely and sustainably delivering a world class CSG to liquefied natural gas (LNG) project on cost and schedule. Current statistics 41,500km 2 exploration acreage More than 9,500PJ of 2P gas reserves in the Surat and Bowen basins 1250 staff, contractors in Brisbane, Moranbah and Dalby Over 200,000 external stakeholders. 50% 50% Domestic business Owns and operates Braemar 2 power station 450MW Supplies about 20% Queensland s gas. 3

4 COAL SEAM GAS PRODUCTION Coal seam gas (CSG) is natural gas, trapped underground in coal seams, mostly methane. Trapped by water and ground pressure. Extracted by drilling into the coal seam and pumping water which releases the gas. Vast CSG resources across Australia s coal basins. Commercially produced in Queensland for more than 15 years. Gas-fired power stations create about half the greenhouse gas emissions of equivalent sized coal-fired power stations. 4

5 NORTHERN OPERATIONS Townsville Power Station Incitec Pivot Plant Ammonium Nitrate Mineral Refining Facilities Xstrata Copper refinery Daandine Power Station Moranbah Power Station 5

6 SOUTHERN OPERATIONS Braemar 1 Power Station Swanbank Power Station Braemar 2 Power Station 6

7 WORLD CLASS CSG TO LNG PROJECT The Arrow LNG Project will help meet demand for cleaner energy. It comprises: 1. Surat Gas Project (Upstream) 2. Bowen Gas Project (Upstream) 3. Arrow Surat Pipeline (Midstream) 4. Arrow Bowen Pipeline (Midstream) 5. Arrow LNG Plant (Downstream) 7

8 UPSTREAM FACILITIES Upstream facilities include: Gas Compression wellhead facilities water and gas gathering integrated gas processing Water Treatment (RO) Gathering Dams Wellhead Skids 8

9 MIDSTREAM Two 500km pipelines from each basin to Gladstone Licensed pipeline route Consultation with landholders Above ground facilities at intervals e.g. valves, scraper stations, cathodic protection systems and marker signs. 9

10 DOWNSTREAM GLADSTONE OPERATIONS Temporary working and accommodation facility LNG plant site Tunnel launch site Gladstone Launch site 10

11 COMMITMENT TO LOCAL BUSINESS Jason Manttan Local Content Advisor 11

12 LOCAL CONTENT POLICY Arrow Energy is committed to creating sustainable employment and economic development for local industry. Arrow Energy will provide full, fair and reasonable opportunity for capable and competitive local industry to participate in the procurement of goods, equipment and services. Arrow has committed to: Actively seeking local industry participation Local = Australia and New Zealand Regional = 50km within operating footprint 12

13 SUPPLY CHAIN CHALLENGES 13

14 KNOW WHERE YOU FIT IN THE SUPPLY CHAIN End User Arrow Tier One Downstream Midstream Upstream Domestic gas Tier Two? Workers Camps Logistics Civil Works Tier Three? Training Catering Landscaping Waste Management Tier Four Laundry Consumables Fresh Food Frozen Food ICN Queensland tier assessment tool helps determine which level to target 14

15 DOING BUSINESS WITH ARROW 15

16 SUPPLIER SELECTION CRITERIA What we look for, and you must be able to demonstrate: commitment to compliance safety and environmental track record capability to supply on time competitive pricing and robust cost management customer focus robust supply chain with local content. These requirements are no different to any major project or government agency. 16

17 CONTRACTING STRATEGY Project Build: tens of thousands of goods & service components During construction, various packages are Asset / Operations related which suits direct proponent contracting Bundled scopes with main contractors Large scale constructor expertise project & risk management regulation and compliance Lower tier / SME opportunities with main contractors 17

18 SUPPLY OPPORTUNITIES Sector General services Supply Opportunities Accommodation Professional services Catering Cleaning Forestry and environmental services Landscaping and gardening Logistics and warehousing Mailing and courier services Personnel agencies Pest control Printing and photography Security Translation services Transportation Construction and trades Air-conditioning maintenance Carpeting and floor coverings Civil works maintenance Earthworks Fencing and paving Low-voltage electrical maintenance Painting and corrosion protection Road marking and signage Roofing and waterproofing Sewage, stormwater and drainage Simple mechanical maintenance Small vehicle maintenance Telecommunications and data systems Waste recycling and management Goods (wholesale, distribution, manufacture) Appliance and electrical goods Automotive parts Cleaning supplies Construction supplies and hardware Food supplies Fuels, lubes and greases Furniture and fixtures Laundry equipment Machined tools and spare parts Office equipment and stationary Small motor vehicles Uniforms 18

19 SUPPLIER SELECTION PROCESS Registration of Interest Selected Suppliers invited to Prequalify Invited Bidders Winning Supplier ICN GATEWAY ARROW SQS 19

20 PREQUALIFICATION FUNDAMENTALS Getting work ready 1. All contractors engaged must comply with the company's Health, Safety and Environment, Code of Conduct and Governance and Control framework 2. Examine your capacity to meet resource project requirements technical capabilities resources commercial/financial capacity insurance cover business plan. 20

21 LIFE SAVING RULES Work with a valid work permit when required Conduct gas tests when required Verify isolation before work begins and use the specified life protecting equipment Obtain authorisation before entering a confined space Obtain authorisation before overriding or disabling safety critical equipment Protect yourself against a fall when working at height Do not walk under a suspended load Do not smoke outside designated areas No alcohol or drugs while working or driving While driving, do not use your phone, do not exceed speed limits Wear your seat belt Follow prescribed Journey Management Plan 21

22 HOW DO I REGISTER MY INTEREST AS A SUPPLIER? 22

23 SUPPLIER REGISTRATION work for us suppliers register your interest 23

24 ICN GATEWAY 24

25 STEPS TO GET YOURSELF READY 1. Is major project work right for your business? 2. Know where you fit in the tier structure and who you need to target 3. Work on your business and make sure you have in place: a business plan a capability statement business systems the right people 4. Explore alliances/partnerships with other companies who compliment your business if you want to go for bigger contracts 5. Identify who you can help your business 6. Register your interest with the right companies 25

26 CONTACTS Robert McRuvie Local Content Team Lead T: M: E: Jason Manttan Local Content Advisor T: M: E: 26

27 QUESTIONS? 27

28 Arrow Energy Pty Ltd September 2013 While Arrow Energy Pty Ltd has endeavoured to ensure that all information provided in this publication is accurate and up to date at the time of publication, it takes no responsibility for any error or omission relating to this information. Furthermore, the information provided shall not constitute financial product advice pursuant to the Australian Financial Services Licence held by Arrow Energy Pty Ltd s related body corporate. To the maximum extent permitted by law, Arrow Energy Pty Ltd will not be liable for any cost, loss or damage (whether caused by negligence or otherwise) suffered by you through your use of this publication. 28