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Australia : APA plans third expansion of eastern Australian gas pipeline system.

A third expansion of pipeline interconnection between the eastern Australian states of Victoria and New South Wales, following an extension to its gas transportation agreement with Lumo Energy is planned by APA Group.

The company said in a statement that the new arrangement with Lumo Energy is for a term of five and a half years, offering a improved suite of services from Victoria through to Sydney using APA's Victorian Transmission System and Moomba to Sydney Pipeline. It renews a suite of transportation and storage services which terminate in 2015 and substitute Lumo Energy's current "as available" service on the Moomba to Sydney Pipeline with a firm service.

The expansion will includes an increase in compression at Culcairn in New South Wales, as well as additional looping on the Victorian Transmission System, at a total cost of around A$25 million ($23.6 million).

The most recent project is besides an expansions needed for Origin Energy, and Energy Australia. Those expansions will include looping sections of the Wollert to Barnawatha pipeline, at a cost of around A$65 million and A$70 million respectively.

APA said, "The aggregate effect of the three expansions will be to increase firm peak winter gas flow capacity from the Victorian Transmission System into the Moomba Sydney Pipeline System by 145% . All three expansions will start this year and be completed by the winter of 2015.

APA Managing Director Mick McCormack said, "We are well placed to respond to changing supply and demand patterns, as demonstrated by the three separate capacity expansion projects that we have committed to in recent weeks. Each of these projects will increase gas flow capacity across the two states, providing further gas supply security for New South Wales .

At present, New South Wales bring in 95% of its 160 petajoules/year (about 160 Bcf/year) of gas demand from Victoria's Gippsland Basin and the Moomba processing facility in central Australia's Cooper Basin. The only indigenous gas production in the state is at AGL Energy's coalseam gas project at Camden, near the capital Sydney.

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Publication:Mena Report
Geographic Code:8AUST
Date:Nov 5, 2013
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