Having recently returned from the Australian Gas Industry Trust delegation to the World Gas Conference (WGC) in Buenos Aires, Argentina, outgoing APIA President Ashley Kellett noted that it was encouraging to see that the Australian pipeline industry is truly in pace with, and at times ahead of, the international scene.

He acknowledged the prodigious efforts of Leigh Fletcher and Ankie Larsson, with the assistance of many others, in developing the Australian Pipeline Industry Association Research and Standards Committee (APIA RSC) as a world-class authority in pipeline research and development.

“Our internationally recognised RSC has ensured that the Australian pipeline industry is at the forefront when it comes to analysis and innovation, which can only be further enhanced by the recently formed Energy Pipelines Co-operative Research Centre,” Mr Kellett said.

Natural gas to play starring role

Mr Kellett said that a recurring theme at the WGC was the role that natural gas would play in international endeavours to reduce carbon emissions.

“It was acknowledged that the general public and the politicians needed to be convinced that natural gas is far from being part of the greenhouse problem and is, in fact, part of the solution,” he said.

At WGC, it was considered that the gas industry had not successfully promoted the benefits of natural gas globally, of which there could be up to 400 years of resources available.

Mr Kellett also made the point that while Australia is isolated from the rest of the world, it is not insular.

“We are the highest per capita emitter of greenhouse gas and that has not escaped the notice of the developing world, a world we are expecting to be clean and green.

“We are also one of the top exporters of LNG and there are any number of LNG projects currently on the books. The evolution of conventional and unconventional natural gas in all its forms and the impact of greenhouse gas containment is as much our issue as anyone else’s.”

Mr Kellett said Australia has a role to play in reducing greenhouse gas emissions, as does the pipeline industry. While transmission pipelines don’t leak, the industry should look at processes and procedures relating to ventings, compressors and possible loss of gas at instruments.

Natural gas should be used as an alternative to coal for base-load power generation and as renewable energy sources are developed, as a back-up fuel.

“The colour of natural gas has to be green – we must ensure that as pipeliners, we can call ourselves green,” he said.

NGVs can help cut carbon

Mr Kellett also highlighted the challenges facing the gas industry to reduce emissions, urging greater development and use of natural gas vehicles (NGVs) in Australia.

“The growth of NGVs in Europe, the subcontinent and the Americas has been dramatic and the objective is a nearly sevenfold increase by 2020. It brings with it about a 30 per cent reduction in emissions compared with petrol, along with cost savings of the order of 50 per cent, based on European experience. Yet, there seems to be very little traction for NGVs in Australia.

“When you consider where our major pipelines run and then consider where our major transportation corridors are situated, why aren’t we thinking more about NGVs? I am told that the range of a typical NGV can be of the order of 400 km. That is, only one refuelling stop between Adelaide and Melbourne.

“We have lots to think about, lots of challenges to resolve, lots of opportunities to maximise. I am confident that working together through our Association as we do, we of the Australian pipeline industry can lead the way.”

APIA strategic plan review

Mr Kellett also commented on the APIA Board’s review of its Strategic Plan, warning that while it is a necessary condition to have a plan, in today’s dynamic environment, a plan alone is not sufficient.

A line item appears on the agenda at every Board meeting to do a ‘reality check’ on the status of APIA’s strategies and risks.

“While we made some changes, we felt comfortable that the plan should continue to serve us well for the next few years,” he said.

As one of the risks to the industry is regulatory risk, Mr Kellett complimented the APIA Regulatory and Economic Policy Committee on the work undertaken to ensure there were amendments to the natural gas legislation, the rules and the procedures, to reduce negative impacts of the legislation on the pipeline industry.

He also acknowledged the owner member companies for supporting the work, by providing the appropriate resources.