Paul Adams has been Managing Director of Jemena since November 2008. He has directed the company during the recent expansions of the Eastern Gas Pipeline (EGP) and Queensland Gas Pipeline (QGP), and the diversification of Jemena’s business into water, wastewater and recycled water projects.

Mr Adams began his career as a trainee at the State Electricity Commission of Victoria, working in electricity distribution, transmission, generation and retailing. After working in various senior roles across 25 years in the electricity and gas industries managing and operating regulated networks, he was appointed Managing Director of Jemena in November 2008.

Mr Adams says that one of the biggest changes he has seen working in the industry has been the unwinding of vertically integrated gas businesses to a horizontally integrated gas market where companies are now specialising in gas wholesaling or shipping, or pipelines and networks.

“Only 20 years ago, there was almost a state-based approach to the supply and delivery of gas.

“[The] Bass Strait supplied Victoria, Moomba supplied South Australia, Roma supplied Queensland. The integration of eastern seaboard pipelines means we’ve forgone the inefficient state-based approach,” he says.

Gas on the east coast

Jemena’s 797 km EGP is a key pipeline in transporting gas interstate on Australia’s eastern coast. Mr Adams says that the company’s upgrade to increase the capacity of the pipeline to deliver gas from Victoria into the Sydney market is a major achievement.

Due to a demand in growth in New South Wales, the company recently installed a midline compressor station on the EGP at Mila, near Bombala in New South Wales. The company is also currently installing a fourth compressor at the EGP’s Longford Compressor Station in Victoria.

“Further expansions are possible and will be considered in response to demand, particularly opportunities from new gas-fired generation in New South Wales and new services designed for the Short Term Trading Market,” Mr Adams says.

Expansion opportunities in the sunshine state

During 2009, Jemena undertook the expansion of its 627 km QGP, which runs from Wallumbilla to Gladstone. The expansion includes the duplication or ‘looping’ of 113 km of existing pipeline and the installation of two midline compressors located at Banana and Rolleston.

Mr Adams explains that the expansion is due to economic and industrial growth in the Gladstone region. He believes that the number of proposed LNG projects to be located at Gladstone could provide further expansion opportunities for the QGP.

“The extent of these opportunities depends on whether LNG project owners decide to use existing pipeline infrastructure or construct new pipeline infrastructure. Given Jemena owns, maintains, operates and develops gas assets, we are well placed to take advantage of LNG development.”

He adds “If LNG projects in Queensland, Western Australia and the Northern Territory – reportedly worth $200 billion in total – come to fruition, there is no doubt that this will present a fantastic opportunity for the pipeline industry in Australia.

“The use of existing pipelines will help project owners minimise costs when they are in start-up phase and then it seems likely that they may need to also build new pipelines later.”

Victorian pipelines

In Victoria, the company has been involved in two major projects to extend natural gas to towns in South Gippsland and the Yarra Ranges.

“Jemena continues to expand the network it manages to meet the increasing demand for natural gas and rehabilitate parts of its existing distribution network,” Mr Adams says.

The $50 million South Gippsland Natural Gas Project involved the construction of a transmission and distribution pipeline, as well as the Yarra Ranges Natural Gas Project, which was completed in late 2008.

Branching out into water

With securing Australia’s water supply a top priority for the federal and state governments, Jemena has focused its attention on water assets such as pipelines and mains upgrades in order to shore up drought-ridden areas and provide a viable supply for industry and domestic users.

“Australia is one of the driest continents on earth so it is encouraging to see a wide variety of projects either underway or in planning stages. My view is that projects which allow, and encourage, the use of recycled water are of significant value to our community. There is so much more to do in this space before we can be confident that our water management practices are suitable for the relative lack of fresh water in the future,” says Mr Adams.

Jemena was awarded a $900 million, seven-year contract to upgrade the Sydney Water network under the Sydney Water Watermains Program by the Momentum consortium, made up of its subsidiary CLM Infrastructure, Bovis Lend Lease and Veolia Water Network Services. The project will enable the Sydney Water network to provide reliable and uninterrupted water supply to four million customers in and around Sydney. Sydney Water had recently contracted CLM and its alliance partners as part of the current $420 million Networks Alliance Program. The upgrades are scheduled to begin this year.

Jemena will also be involved in the $100 million Rosehill Recycled Water Scheme in New South Wales which includes the construction of a water recycling plant; a new 20 km recycled water distribution system to service high-volume water users in the Rosehill and Smithfield areas; and, two recycled water storage facilities at Woodville Golf Course, off Barbers Road in South Granville, and off Durham Street in Rosehill.

Construction has begun for the Rosehill-Camellia Recycled Water Scheme, which is to be owned, operated and maintained by two private operators– Jemena subsidiary AquaNet Sydney Pty Ltd and Veolia Water Australia.

“Once in operation in 2011, the scheme will initially produce and deliver about 4.3 billion litres of recycled water a year to industrial customers in Western Sydney, including Visy Paper, Marubeni Australia Power Services, Shell and Rosehill Gardens Racecourse for the Sydney Turf Club,” says Mr Adams.

The scheme also has the potential for further expansion, with an additional three billion litres per year supplied to customers in Westmead, Parramatta, Wetherill Park, Fairfield and Liverpool.

Continual development

Of his time in the industry, Mr Adams says “I have been fortunate enough to work with a very talented, experienced, committed and passionate group of professionals and tradesmen wherever I’ve worked in this industry.

“The most important thing I have learned from working with such people and hearing their ideas and experiences, is that you never stop learning!”

Mr Adams says Jemena stands in good stead as it looks to continue to build, own, operate, develop and manage gas assets into the future.

“Jemena is well placed to take advantage of major national energy developments,” says Mr Adams.