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 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 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 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
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 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
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 Q3 2013 Winter 2014 Winter 2015 Expansin case midline cmpressrs sites 7
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
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 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