New South Wales consumes significant volumes of natural gas, the majority of which is currently imported via the Moomba to Sydney Gas Pipeline from the Cooper Basin, located on the borders of New South Wales, South Australia and Queensland, and via the Eastern Gas Pipeline and the New South Wales/Victoria Internconnect, which transport gas from offshore Victoria.

As New South Wales begins to turn to cleaner energy sources such as gas, there is an increasing need to ensure that the infrastructure needed to deliver the gas to market is developed. Exciting new pipeline projects have appeared over the last two years, ensuring that the increased demand for gas use by industry, power generation and domestic use in New South Wales is able to be met.

Moomba to Sydney Gas Pipeline

An integral part of the national gas pipeline network, the Moomba to Sydney Gas Pipeline faced many challenges throughout its construction. In 1971, AGL set up the East Australian Pipeline Corporation and selected nine companies to tender for its 1,300 km Moomba to Sydney Pipeline. Saipem was awarded the contract for the first section of construction, which ran from Moomba in South Australia to the Barrier Highway in New South Wales. Australian Pipeline Construction was contracted for the second and third spreads of the pipeline by the Pipeline Authority and East-Aust Pipeline Corporation, which by then had taken over responsibility for the project. The second spread extended 566 km from the Barrier Highway to Gunning and the third spread was 115 km in length and ran from mile post 709 to mile post 781. A Newham–Techint joint venture was awarded the construction contract for spread four, which ran from mile post 781 to post 807. Spread five, running between mile post 807 at Bowral and mile post 839 at Sydney – was also awarded to Newham–Techint.

Construction was expected to begin in late February 1974. Extensive flooding throughout northwest New South Wales caused the delay of construction on the pipeline until mid-1974. Industrial disputes stopped work on the pipeline with workers demanding increased wage rates and organised time away from the job. Despite this construction proceeded, with natural gas first flowing to Sydney in December 1976.

In July 1982, a 10 km section of the mainline blew out due to stress corrosion cracking. A temporary bypass pipeline was in place within a few days allowing gas delivery to continue. McConnell Dowell constructed a 660 mm diameter pipeline to bypass the damaged section of the pipeline. The construction was completed in 28 days.

In 1984, a 34 km, 864 mm diameter section of the pipeline was looped by Eric Newham Holdings. The Bulla Park Compressor Station was completed and commissioned in 1986. A compressor station at Young was completed on the pipeline in 1989.

The mainline’s capacity is presently fully contracted. Current owner APA Group has been experiencing increased demand for storage and peaking services on the Moomba to Sydney Gas Pipeline over the last year, partly due to Origin Energy’s Uranquinty Power Station coming online.

Supply and demand in NSW: a series of discussions

A major report entitled, A case for the national pipeline grid for natural gas, was released in 1985 stating the case for a national gas pipeline system as part of the national energy policy in Australia, recommending, a pipeline link between New South Wales and Victoria as part of the grid. A series of discussion papers was issued, including a paper looking at natural gas, and another on energy demand scenarios. Pipelines from Albury to Wagga Wagga, and Melbourne to Young were highlighted in the papers.

A subsequent review of energy issues in 1987 concluded that Australia’s gas reserves were sufficient to meet national demand for decades to come, but uneven geographic distribution of reserves and markets raised the prospect of local supply and demand imbalances. The discussion highlighted a number of major pipeline options including interstate connections on the eastern seaboard. Connecting to the main line

Many laterals have been constructed from the Moomba to Sydney Pipeline to supply gas to other parts of New South Wales, and this in turn has spurred further pipeline development throughout the state.

Lucas-Hood Construction constructed a 32 km lateral off the Moomba to Sydney Pipeline leading to Wollongong. The 864 mm diameter lateral was completed at the start of 1976.

Eric Newham also completed the 58 km Dalton to Canberra gas pipeline in 1981, transporting gas from the Moomba to Sydney Pipeline to the Australian Capital Territory.

Sydney to Newcastle Gas Pipeline

In 1979, AGL proposed the 508 mm diameter, 174 km Sydney to Newcastle Gas Pipeline – as a major off-take from the Moomba to Sydney Pipeline. Spie-Capag was awarded the construction contract with construction completed in 1982 following industrial disputes.

The pipeline consists of two parts – a 141 km pipeline running from Plumpton to Killingworth, and a 355 mm diameter, 33 km pipeline running from Killingworth to Walsh Point. Jemena now owns the pipeline.

A products pipeline also runs between Killingworth to Walsh Point, which was constructed by Eglo Engineering in 1981. Eglo Engineering also constructed a 25 km Silverwater to Plumpton products pipeline. The pipeline shares the same trench as the last section of the Sydney to Newcastle Gas Pipeline.

Earlier this year, Jemena constructed the Colongra Lateral Pipeline, which connects Delta Electricity’s 660 MW gas-fired peaking power station at Colongra to the Sydney to Newcastle Pipeline. The Colongra lateral is the largest diameter onshore gas pipeline ever constructed in Australia. The 42 inch diameter, 9 km pipeline provides gas storage as well as a transportation service to meet the needs of the peaking plant.

Bathurst, Orange and Lithgow supply

In 1982, the New South Wales Treasurer Ken Booth said that the Government was intending to pursue the supply of gas to Bathurst, Orange and Lithgow via a lateral pipeline running from the Moomba to Sydney pipeline. Construction on the 240 km, 150 mm and 100 mm diameter pipeline was awarded to Clough, and was completed in 1987. A 31 km lateral to Oberon was constructed by AJ Lucas and Perry CM in 1987.

New South Wales/Victorian Interconnect

Red Ru completed construction of the 130 km Young to Cootamundra and Wagga Wagga pipeline in 1981. Then, in 1995 the East Australian Pipeline Limited (owner of the Moomba Sydney Pipeline) and the Gas Transmission Corporation of Victoria jointly announced the possible interconnection of the Victorian and New South Wales gas systems through the construction of a 145 km gas pipeline from Wagga Wagga to Wodonga. The pipeline was split into two sections. The 88 km section running from Wagga Wagga to Culcairn was designed to provide a two-way flow of gas to enable access to South Australian and Victorian gas fields. The final 57 km section of the Interconnect pipeline from Culcairn to Wodonga enabled gas to flow for the first time between New South Wales and Victoria. It began operations in 1998.

Narranderra, Leeton and Griffith supply

The Pipeline Authority contracted McConnell Dowell to construct a pipeline connecting the towns of Narrandera, Leeton and Griffith to natural gas. The 180 km, 155 mm pipeline was to run from Junee to Griffith via Narrandera and Leeton. McConnell Dowell was contracted to construct the pipeline system and the project was completed in late 1993.

Central West Pipeline

In 1999, AJ Lucas completed construction of the 254 km Central West Pipeline, which runs between Marsden and Dubbo, linking the Moomba to Sydney Pipeline system with regional centres including Forbes, Parkes, Narromine and Dubbo.

Eastern Gas Pipeline

In 1995, an environmental impact assessment was submitted for the 795 km Eastern Gas Pipeline, which would run from Victoria to New South Wales. The pipeline, of which 467 km was laid in New South Wales, would travel from Longford, Victoria, to Sydney.

Construction of the Eastern Gas Pipeline commenced in 1999. A joint venture between Transfield, Willbros and Macmahon was awarded the construction contract. Construction on the pipeline began in August 1999.

Commissioning of the pipeline had begun by September 2000, in time for the Sydney Olympics, with a capacity to transport 65 PJ/a of gas. Duke Energy International originally owned the pipeline, however Alinta acquired all of Duke Energy’s assets in 2004, including the Eastern Gas Pipeline. Following the sale of Alinta assets in 2007, the current owner of the pipeline is Jemena.

Illabo and Tumut supply

In 2000, Great Southern Energy Gas Networks and a Minson/Nacap joint venture signed a partnering contract and constructed the 64 km, 200 mm diameter Illabo to Tumut gas pipeline and associated facilities in New South Wales.

Central Ranges Pipeline

The Central Ranges Gas Pipeline runs through the Gunnedah Basin from Dubbo, where it connects with the Central West Pipeline, to Tamworth. The 294km pipeline was constructed by Delco. Construction began in December 2004 and the pipeline was commissioned in August 2006.

APA Group acquired the Central Ranges Gas Pipeline and associated distribution network from Country Pipelines in 2008.

The pipeline consists of 294 km of transmission pipeline, constructed by Delco, and was commissioned in August 2006.

Last year APA entered into a Heads of Agreement with Eastern Star Gas (ESG) to investigate arrangements to transport Eastern Star Gas’ CSG to south eastern Australian gas markets from the Narrabri CSG Project. The Central Ranges Gas Pipeline is within 100 km of the project.

ESG has also entered into discussions with the Newcastle Port Corporation to build an LNG plant, utilising the New South Wales harbour as a second east coast export hub for the development of the Narrabri project. Narrabri is approximately 400 km from Newcastle.

Sydney Primary Loop

In 2007, Jemena’s Sydney Primary Loop project reached completion. The project was constructed by an alliance of the then owner Alinta, Codmah and Diona Civil Construction and involved a 30 km natural gas pipeline which runs through Sydney’s southwestern suburbs from Casula to tie into the existing primary main pipeline at Marrickville. QSN Link

Earlier this year the Queensland to South Australia/New South Wales (QSN) Link began operations. The link is a 180 km, 400 mm diameter extension of Epic Energy’s South West Queensland Pipeline (SWQP). The pipeline will be Class 900, with a maximum allowable operating pressure of 15.3 MPa. The pipeline connects the SWQP to the Moomba to Adelaide and Moomba to Sydney pipelines. On the horizon: future pipeline projects

APA says that the decline of 2P gas reserves in the Cooper Basin Moomba is occurring at the same time as an increase in demand for natural gas is increasing in New South Wales. This has meant that companies are looking to source gas for the state from elsewhere, such as Queensland’s CSG fields. This will require the expansion of pipeline infrsatructure or new pipelines to bring this gas into New South Wales.

Wambo to Wellington Gas Pipeline

ERM Power is investigating the feasibility of building a 900 km interstate gas pipeline between Queensland and New South Wales. The proposed $500 million project would transport and store gas from Wambo, Queensland, to its proposed Wellington Power Station, and consist of four sections to be developed in stages.

ERM Power are also investigating an additional gas supply alternative with a pipeline that will connect the Moomba to Sydney Pipeline at Young.

The pipeline is required to be operational approximately three months before plant testing commences. It is expected that the notice to commence design and construction of the pipeline would occur as soon as possible following approval from the New South Wales Government.

Queensland Hunter Gas Pipeline

Queensland Hunter Gas Pipeline (QHGP) Pty Ltd has proposed to construct and operate a high pressure gas transmission pipeline to run from the Wallumbilla Gas Hub in south central Queensland to the existing Sydney to Newcastle Pipeline at Hexham in New South Wales. The propsed pipeline will be approximately 833 km in length, with 222 km located in Queensland and approximately 611 km in New South Wales. The pipeline would transport CSG from numerous fields located within the vicinity of the route.

If the project proceeds, the QHGP will provide gas to power stations in the Hunter region and further to the New South Wales’ metropolitan market via a connection into the Sydney to Newcastle Pipeline.

The QHGP received the New South Wales Government’s approval in February.

The pipeline is expected to cost $850 million, generating 600 jobs in New South Wales during construction and 25 full time positions across New South Wales and Queensland when operational. The proposed pipeline will have free flow capacity of 85 PJ/a.

In 2008, URS completed front-end engineering and design studies. Tendering for material supply and services as well as the environmental approvals processes is underway.

Lions Way Pipeline

Metgasco has proposed the 145 km Lions Way Pipeline, which is set to start in Casino and head north via Kyogle. The pipeline will then travel into Queensland ending at Ipswich. The pipeline is underpinned by a gas supply agreement to Metgasco’s Clarence Moreton Basin partner, CS Energy for its Swanbank Power Station. Approximately 55 km of the pipeline is within New South Wales.

All environmental studies required for the pipeline have been completed and no significant environmental issues have been identified. First gas is planned for delivery by early 2011, at a pipeline construction cost of $70–85 million, depending upon the pipe diameter ultimately adopted.

Wallumbilla to Bulla Park Pipeline

In 2007, APA announced that it was investigating the construction of a 645 km high pressure pipeline to connect the Wallumbilla Gas Hub in Queensland with the Moomba to Sydney Gas Pipeline at Bulla Park, of which approximately 350 km will be located in New South Wales. The pipeline would be 18 inches in diameter.

Land access work on this pipeline continues and the pipeline will be developed when there is a market demand for an additional supply pipeline into the New South Wales market.

Liddell Power Station Pipeline

The New South Wales Government has approved the east-west component of Macquarie Generation’s proposed Liddell Gas Pipeline, to be located north of Sydney.

The 500 mm diameter, 25 km pipeline will extend west of the Liddell Power Station toward the Mt Arthur Coal Mine and southeastwards near Ravensworth, transporting waste methane obtained from Hunter Valley coal mines to the power station for use as a supplementary fuel for electricity generation.

Macquarie Generation has also received New South Wales Government approval on the 500 mm diameter, 51 km north-south component of the pipeline.

Young to Wagga Wagga Looping Pipeline

APA Group is proposing an 18 inch diameter high pressure gas pipeline, which will duplicate the existing 12 inch Young to Wagga Wagga Gas Pipeline. The project is estimated to cost approximately $80–90 million and is intended to be laid entirely within the easement of the existing pipeline. The staged development of the new pipeline will be directly related to the system requirements for gas users and it is currently expected that approximately 50 km will be required initially.

The proposed pipeline will run northeast from Wagga Wagga toward the Young Compressor Station. Gas is to be supplied to the pipeline from Culcairn via the southern lateral of the Moomba to Sydney Pipeline

More recently, the existing pipeline has also operated as a storage facility to enable the supply of natural gas high peak flow rates to Origin Energy’s new gas-fired power station at Uranquinty. Ultimately, the entire length of the 130 km pipeline from Young to Wagga Wagga could be looped, which would provide a greater capability to move gas between New South Wales and Victoria. APA has submitted a preliminary environmental impact statement to the New South Wales Government.

Stratford to Hexham Pipeline

Route selection and refinement is underway regarding a pipeline to deliver gas from AGL Energy’s Gloucester Basin CSG Project, located at Stratford, to Hexham. The pipeline is expected to be between 10–18 inches in diameter, depending on storage need. Lucas Energy and Molopo had originally proposed the pipeline before AGL acquired the CSG project in 2008. The proposed pipeline will commence at the planned central processing facility and connect to the gate station facilities on the Sydney to Newcastle Pipeline at Hexham. Preliminary investigations have determined a preferred pipeline corridor and the likely constraints relating to existing land use, environmentally sensitive areas and constructability.

The pipeline will have a maximum allowable operating pressure of between 10.2 and 15.3 MPa.

Camden Pipeline

AGL is proposing the construction of a sales gas pipeline to run from its Camden Gas Field, located 50 km southwest of Sydney, to connect with an interstate gas pipeline. The company released a preliminary environmental assessment for the pipeline in February. Route surveys for the pipeline are yet to be completed.

Conclusion

The increase in gas exploration and production on the east coast looks set to bode well for associated pipeline development in New South Wales in the future.

The growth of CSG reserves in Queensland’s Surat and Bowen basins has driven the investment in interstate pipeline connections. In addition, the development of gas fields in the Gunnedah and Gloucester basins in the state has meant that more pipeline capacity will be needed to transport gas to market.

The many gas-fired power generation projects that are proposed in New South Wales as a response to reducing carbon emissions also means that pipelines will need to be enhance with capacity expansion or new pipeline infrastructure.