The body that conducted a competitive tender for the Central Ranges Gas Pipeline, Central Ranges Natural Gas and Telecommunications Associations Incorporated (CRNR&TAI) was formed by eight Councils and corporations of Tamworth, Gunnedah, Mudgee, Coonabarabran, Quirindi, Gilgandra, Coolah and Parry.

In 2004, CRNR&TAI conducted the tender, which was administered by the Federal and NSW State Governments with the ACCC. This was the first time a region in Australia had sought out a supply of natural gas for itself.

There was already a licence that had been issued for the Central Ranges region in early 2003, but the holder, who had intended to build a transmission pipeline from Dubbo to Tamworth and from Breeza to Gunnedah with other lateral lines to various centres in the region, indicated before the tender process that it would not be proceeding with this project.

The tender to build a pipeline was won by the Europacific Consortium, which proposed that natural gas would be provided to Tamworth immediately and Gunnedah, subject to the construction of an ethanol plant, and be rolled out to other towns as the economics of the pipeline permitted.

The Europacific Consortium, comprising Jasdell and Europacific Corporate Advisory, established Country Pipelines and a wholly owned subsidiary named Central Ranges Pipeline (CRP) to exercise the right to take a transfer of PL27 and then construct and operate the pipeline. The major shareholders were led by a consortium of Australian leading superannuation investment funds, headed by Colonial First State.

On 29 April 2005, CRP took a transfer of the licence, awarded Delco Australia the EPC contract to construct the transmission pipeline and appointed Jasdell to act as Project Managers on the transmission pipeline and distribution networks. Jasdell were also appointed to complete design and to oversee construction of the distribution network. Ydennek were appointed to construct the distribution network in Tamworth on 1 December 2005.

Agility was awarded the operating and maintenance services contract for both CRP’s transmission pipeline and the Tamworth distribution network on 24 February 2006.

Construction is now complete on the transmission pipeline from Dubbo to Breeza and from Breeza to Tamworth. The construction contractor and project manager rolled out the distribution network to schedule; construction on the main transmission pipeline commenced on 4 August 2005 and gas flowed to the first Tamworth major industrial and commercial customers on 28 August 2006. The total length of the transmission pipeline is 294.33 km.

The pipeline was officially opened by the NSW Minister for Energy the Hon Joe Tripodi and CRP’s Chairman of Directors Jock Murray on 2 August 2006.

A total of 198 people worked on construction and commissioning of the right of way, and more than 420 people were involved in the planning, design, construction, commissioning, funding, documenting and approval of the pipeline. Labour was also drawn locally, including 32 indigenous men and women and tradespeople from every state and territory of Australia.

On 4 April this year, the pipeline was welded, in the ground and backfilled, precisely 6 months to the day after construction commenced in Tamworth last October. The pipeline measured 8 inches in diameter from Dubbo to Breeza and 6 inches from Breeza to Tamworth. Pipe was supplied by Orrcon and the pipeline route traversed the Mining Exploration area granted during construction to BHP Billiton in and about Caroona NSW. The pipeline was designed and constructed to meet the predicated potential subsidence from mining under and around the pipeline.

The pipeline involved 20,051 pipe lengths welded together by seven experienced welders. There was a total of 235,896 hours of construction work, which was achieved without a single Loss of Work Time Injury, meaning that a target zero was obtained. During construction, 4,830 fauna were rescued and relocated to habitat, and GIS was referenced to assist the Department of Natural Resources with species identification in the region.

Approximately 75 km of PE distribution network has been constructed, tested and gassed in and around Tamworth to immediately offer major commercial industrial and residential consumers a target of having completed up to 230 km of network in Tamworth before the calendar year end 2007. Tamworth’s large industrial users have already committed to natural gas, and are in the process of transferring from their previous energy source to natural gas. The PE pipe has been supplied by George Fischer.

Savings for households using mains gas from the pipeline when compared to LPG are greater than 50 per cent, with business enjoying grater savings depending on load demand. Savings are currently increasing due to increases in the price of oil.

In this highly valued agricultural belt of Australia, landowners have specifically requested to be connected to the natural gas transmission pipeline for agricultural use in irrigation pumps and drying sheds to reduce their operating costs. CRP has provided strategic offtakes to facilitate future use and is currently working with 71 agricultualists to deliver a cost benefit to the region.

CRP’s Mission Statement can be summarised as follows:

“To deliver natural gas to the people of the Central Ranges Region in the most commercially effective and safe manner benefiting the community, the environment and the Company’s stakeholders.”

There are immediate plans under consideration by CRP for the construction of lateral lines to Gunnedah and Mudgee and determinations are expected before the end of the calendar year on a construction timetable.