Jemena Pipelines. NSW Pipeline Infrastructure. the current picture; future needs for future supplies; challenges & opportunities for development.

Transcription

1 Jemena Pipelines NSW Pipeline Infrastructure the current picture; future needs fr future supplies; challenges & pprtunities fr develpment. AIE half-day Frum - 24 June 2013 NSW Lming Gas Shrtage: Fact r Fictin?

2 2 Jemena s Gas Assets Eastern Gas Pipeline Links Gippsland in Victria t markets in NSW Queensland Gas Pipeline Links Wallumbilla t Gladstne and Rckhamptn VicHub Intercnnect Facility Intercnnect facility between the EGP and the Victrian gas transmissin system Clngra Gas Transmissin & Strage Pipeline 9km gas transmissin and strage pipeline delivering gas t Delta Electricity s gas turbine facility Jemena Gas Netwrk Since its beginnings in 1837 the Jemena Gas Netwrk¹ in New Suth Wales has grwn t service ver 1 millin custmers acrss its 23,800 km length

3 3 Eastern Gas Pipeline: Asset Overview Descriptin 797km pipeline between Lngfrd & Sydney Supplies 50% f NSW & ACT Gas Netwrk with gas frm Gippsland Services several significant reginal centres en rute, including Canberra & Wllngng Primary demand frm industrial custmers, pwer generatrs and retailers Asset Lcatin Key Metrics Current capacity: 106 PJ pa Cnstructed in 2000 Key Shippers/ End Users include:

4 4 East Cast Infrastructure Rckhamptn Mmba Cper SWQP Surat & Bwen s Gladstne Brisbane Gunnedah Clarence Mrtn Glucester Adelaide Sydney Sydney Otway Melburne Bass Gippsland Legend Tasmania Cnventinal Gas SPIAA pipelines CSG Hbart VicHub Clngra

5 ynamic Change in the Eastern Australian Gas Market arge Scale LNG Exprt Prjects c.38,000 PJ and cunting Eastern Australian Gas Markets / Reserves hanging Dmestic Market Dynamics Eastern Australian Gas Flws Changing Cper gas being drawn nrth Uncnventinal gas increasing Dmestic Demand Impacted Frecast f higher prices Reductin in GFG Shrter term cntracts Surce: 2P reserves and 2015 Gas Demand frm AEMO Gas Statement f Opprtunities 2012.

6 6 Outlk fr NSW? LNG Prjects will have a Prfund Impact n Pipeline flws: Expected Gas Flws in Eastern Australia Dmestic demand is cmpeting with LNG exprts at a time when dmestic cntracts are up fr renewal. Significant reductins in gas flwing frm Cper t NSW Cmmunity cncern t CSG is impacting develpment f new surces f supply 95% f NSW gas is imprted Is NSW CSG the Silver Bullet? NSW CSG was expected t replace sme Cper vlume nce infrastructure cnstructed Technical, envirnment & regulatry issues mean timing and vlume cming nline is uncertain Adelaide Legend Cnventinal Gas CSG Mmba Cper Otway SWQP Melburne Bass Hbart Surat & Bwen s Gunnedah Sydney Gippsland Tasmania Rckhamptn Gladstne Clarence Mrtn Sydney Glucester Brisbane SPIAA pipelines VicHub Clngra

7 EGP Capacity Expansin Opprtunities EGP is planning expansin frm a capacity f 106PJ p.a. t 130PJ p.a. : T secure gas supply t NSW that has histrically been surced frm Cper Tw additinal cmpressr statin n EGP at Orbst & Michelag The FEED study is being reviewed and finalised When?? Time is running ut t get additinal capacity fr Winter 2015 A clear picture f demand is difficult as participants adjust t the new market Discussins under way t finalise custmer requirements Mila Orbst Michelag FEED Study Bard Apprval (FID) Cnstructin Cmmissined Current Status Q Winter 2014 Winter 2015 Expansin case midline cmpressrs sites 7

8 What abut NSW native natural gas? NSW has abundant uncnventinal gas reserves Pipelines shuld nt be seen as the cnstraint Jemena has histrically delivered pipeline slutins t meet custmer demand Jemena is in psitin t build pipelines t facilitate flw f gas t demand centres But significant infrastructure like this requires cntracts nt just STTMs The limitatin will be the apprvals prcess n the gas develpments There is an pprtunity t intrduce greater cmpetitin t the transmissin market n the East Cast An intercnnected East Cast t prvide supply slutins that t help manage current and future market changes 8

9 Thughts n the Grattan reprt The EGP is expected t be expanded as a key part f the slutin t the NSW shrtfall We agree general prtectinism isn t the answer althugh plicy t manage transitin impacts culd be cnsidered In ur experience capacity is traded between existing pipeline shippers supprted by ur cntracts Jemena believes that any new measures t imprve market transparency and cmpetitiveness shuld be subject t rigrus cst benefit analysis All regulatin impses a cst burden Expect limited actual gas trading STTM price signals will nt drive investment in new capacity 9

10 10 In Cnclusin The gas market is changing and new infrastructure is required t meet the new demands Pipeline capacity will be built t meet custmer need There is sufficient time t build pipelines But shrt term markets wn t deliver lng term utcmes