From 2000 to 2010, Australia’s natural gas consumption is forecast by the Australian Bureau of Agricultural and Resource Economics to increase from around 900 PJ/a to over 1,500 PJ/a, an increase of over 65 per cent. Similarly, Queensland is set to increase the percentage of its energy generation produced by natural gas from the current 13 per cent to 18 per cent by 2020.

In southeast Australia, there have been several major pipelines built in recent times, with other projects already underway and several waiting in the wings. One recently completed project is the Central Ranges Gas Pipeline in New South Wales, constructed by Delco, which was officially opened in August 2006. The 8 inch pipeline runs from Dubbo to Breeza (250 km) and from Breeza to Tamworth (50 km). A 6 inch lateral is also planned to Gunnedah from Breeza (36 km) to supply a proposed ethanol plant, with further laterals and reticulation networks to be built in coming years.

Connecting NSW and the Queensland markets is the Wallumbilla to Hexham Pipeline, which is currently in the design phase. Hunter Energy is planning to construct the 850 km, 508 mm diameter pipeline to run from the Wallumbilla gas hub in south central Queensland, connecting into the existing Sydney to Newcastle pipeline at Hexham, at an estimated construction cost of $A700 million. The company is awaiting Federal Government approval for the NSW portion of the pipeline, though the Queensland portion has been approved. The final Environmental Impact Statement is expected to be completed in 2008.

In Victoria, with the 685 km SEA Gas pipeline to South Australia having been operational for more than three years– supplying over 50 per cent of Adelaide’s natural gas needs – there have been a number of important project developments.

For example, AJ Lucas recently won the EPC contract with APA Group to construct the Brooklyn to Lara Looping. This looping project is an important addition to the gas transmission system in Victoria and will provide greater security of supply to Victorian gas users. The looping will comprise 58 km of 500 mm diameter pipe with completion planned by the winter of 2008.

Elsewhere in Victoria, Woodside’s Otway Gas Project has recently come online, with pipelines connecting the offshore Thylacine and Geographe gas field to an onshore processing facility north of Port Campbell, which commenced commissioning in late July 2007. The Otway project will supply up to 10 per cent of southeastern Australia’s current annual natural gas demand.

Over the project’s life, the Thylacine and Geographe gas fields are expected to supply 950 Bcf of raw gas, 885 PJ of sales gas, 12.2 MMbbl of condensate and 1.7MMt of LPG.

Up north in Queensland, there are plans to build a new 420 km coal seam gas pipeline from Moranbah to Gladstone, following the success of the North Queensland Gas Pipeline from Moranbah to Townsville, which was completed in September 2004. However, with the Queensland Government currently in the process of selling project proponent Enertrade, it is not known how the plans for this Central Queensland Gas Pipeline will be affected.

Meanwhile, as part of a plan to connect the Queensland, South Australia and NSW gas markets, creating an eastern Australian gas grid, Epic Energy has put forward a plan to construct the QSN Link, which will be a 180 km, 350 mm diameter extension of Epic Energy’s South West Queensland Pipeline. It has been designed to be able to transport up to 190TJ/d when fully compressed.

Epic has commenced a selection process for pipeline constructor for the QSN Link and expect to make an appointment in the near future. The company is also undertaking field survey work and is progressing with approvals processes in South Australia and Queensland. The total cost of the QSN Link, together with associated compression, is expected to be around $A140 million.

In the Northern Territory, APA Group is working on its plans to construct the 300 mm, 280 km Bonaparte Gas Pipeline, which will run from the onshore gas plant at Wadeye to the Amadeus Basin to Darwin Pipeline, delivering approximately 30 PJ/a, with construction set to begin in 2008. The gas is being sourced from the offshore Blacktip gas field, located approximately 120 km west of Wadeye in the Joseph Bonaparte Gulf. As the owner/operator of Blacktip, Eni Australia has contracted Saipem to construct the subsea pipeline to transport the gas from the offshore platform to the gas processing plant at Wadeye.

In Western Australian, works are continuing on the expansion of the Dampier to Bunbury Natural Gas Pipeline. The first stage of expansion, Stage 4, was completed early in 2007 by the Nacap KT joint venture, increasing the pipeline’s capacity by more than 100 TJ/d.

Stage 5 of the expansion involves the construction of an additional 1,150 km of new pipeline loops and the installation of a further four 10 MW and one 7MW compressors, at an estimated cost of approximately $A1.5 billion. Construction of the first core component – known as Stage 5A – commenced in early 2007 with pipeline construction being undertaken by Saipem.

A further expansion to Stage 5A, known as Stage 5A (2), has been confirmed by Dampier Bunbury Pipeline (DBP) following the finalisation of contractual arrangements with shippers for additional capacity. The $A245 million expansion will involve approximately 140 km of additional pipeline looping. Construction will begin in 2009 and DBP has entered into a commitment with Metal One for the purchase of pipe. A tender process for the construction of the additional looping will be conducted during 2008. In total, Stages 4 and 5 will effectively duplicate approximately 90 per cent of the length of the DBNGP.

A recently completed WA project is the Port Hedland to Telfer Pipeline, constructed in 2004. The pipeline extends from existing infrastructure at Port Hedland to the Newcrest-owned gold-copper mine at Telfer. The 450 km 250 mm pipeline was built at a cost of approximately $A114million.

Also in WA, the proposed 630 km Great Northern Pipeline will run from the area east of Broome to the Pilbara, delivering gas from ARC Energy’s interests in the onshore Canning Basin. Construction is hoped to commence in April/May 2009 with gas deliveries to market commencing in mid-2010. OSD Engineering is doing the preliminary engineering for ARC, and initial projections see the pipeline using 16 inch pipe and having an approximate capacity of 150 TJ/d freeflow and 300 TJ/d compressed.

Offshore projects are also of interest in WA and right across Australia, with projects such as Woodside’s recently approved Pluto development requiring a network of subsea and onshore pipelines as part of their construction. As reported in the July edition of The Australian Pipeliner, the Australian records for the longest and largest diameter offshore pipelines have been set and broken in the past five years – with the 300 km long Tasmanian gas pipeline completed in 2002; the 26 inch, 500 km long Bayu Undan gas export pipeline a few years later; the completion of Woodside’s 135 km long, 42 inch diameter second trunkline in 2003, and these records likely to be beaten soon as a consequence of the resource boom.

Another thriving area in recent times has been water pipeline construction. As a result of years of drought throughout parts of Australia, there have been several new projects commenced which have seen involvement from traditional oil and gas pipeline constructors. In Queensland, the Western Corridor Recycled Water Project – which includes pipelines totalling more than 200 km – is the largest recycled water scheme to be constructed in Australia.

In Victoria, the Wimmera Mallee Water Pipeline project is currently under construction, with a 6,500 km pipeline network being used to replace around 17,000km of open irrigation channels. Also in Victoria, the Goldfields Superpipe will connect Ballarat to the Goulburn system via the Bendigo pipeline, securing water supplies for Ballarat. The pipeline connecting the Goulburn system to Bendigo will measure 46.5 km, and will run for another 110 km to connect Ballarat.

In New Zealand, developments in the Taranaki Basin, off the North Island’s western coast, have been powering ahead recently, with the Tui Oil Project being officially opened. On the South Island, the Great South Basin has been the focus of exploration potential.

Pipelines will be constructed in conjunction with these developments, such as at the Kupe Gas Field Development, which requires a 30 km, 12-inch subsea pipeline that will deliver raw natural gas, LPG and condensate to shore; a shore crossing that will be undertaken to join the subsea pipeline to the onshore components of the project; an underground pipeline to carry raw gas from the shore crossing to a new production station, and an underground onshore pipeline to carry treated sales gas to connect into the existing high pressure gas transmission network. An onshore pipeline may also be required to transport light oil to a production station. Pipelaying at Kupe is expected to start in early 2008.

At Shell’s Pohokura gas field, first offshore gas flows through an associated subsea pipeline were achieved in March. The Pohokura development includes a single offshore platform, from which the 8km, 12-inch pipeline and multiple service lines run to the onshore facility, which processes the high-pressure gas flow from the off and onshore wells.

The natural gas will be fed into the North Island gas network and the condensate will be piped to storage tanks at Omata near New Plymouth for shipping to refineries.

Across Australia, gas and water infrastructure projects are set to continue on a strong growth path, with more slurry pipeline developments on the horizon also. Another developing field in the pipeline industry is the potential for CO2 pipelines for use in carbon emissions capture and storage projects. In general, it’s a fantastic time to be working in the pipeline industry!