New South Wales has borne witness to significant developments in the infrastructure and energy industries over the course of 2022, with projects set to improve the state – and the nations – push toward a greener energy future undertaken with the aid of the gas industry in 2023.
As the curtain began to close on 2022, leading engineering services company Verbrec supported the construction of Australia’s first LNG import and regasification terminal, located at Port Kembla.
Similarly, Australian oil and gas exploration and production company Santos, secured its acquisition of the Hunter Gas Pipeline, which owns an approved underground gas pipeline route from Wallumbilla in Queensland to Newcastle in New South Wales.
While Australia moves towards achieving net zero in the coming decades, the state of New South Wales alongside Australian Renewable Energy Agency (ARENA) is working hard to do their part. ARENA is responding to the increasing global interest in renewable energies by supporting BlueScope Steel with $924,784 in funding to investigate options to decarbonise operations at the Port Kembla Steelworks (PKSW).
Verbrec aiding construction of Australia’s first LNG import terminal
The LNG import terminal will consist of a permanently moored floating storage regasification unit (FSRU), onshore facilities, a gas export pipeline tying into the East Coast grid, nitrogen injection facilities and additional tie in facilities.
Verbrec has been contracted to provide the detailed design of the onshore receiving facilities, including utilities and control systems, balance of plant, non-process infrastructure, fire safety and civil roads and drainage.
In addition, the company will also provide procurement support and the overall integration of 3D modelling.
Verbrec CEO, Matt Cooper, says the company is proud to be playing a role in such an important project that is striving towards safeguarding energy security during a challenging time for the Australian energy market.
“We are looking forward to assisting the client to establish a new energy source for the NSW market,” says Cooper.
Santos acquires Hunter Gas Pipeline
The underground pipeline route passes close to Santos’ Narrabri Gas Project. Santos’ goal is to work with infrastructure developers and owners to construct the pipeline and deliver much-needed gas to east coast domestic markets in the shortest timeframe possible.
The pipeline will also be designed to transport hydrogen as customer demand evolves throughout the energy transition.
Santos’ Midstream and Clean Fuels President, Brett Woods, says the acquisition provides a pathway for the delivery of gas from the Narrabri Gas Project to the domestic market, subject to a short connection to the main pipeline, which is currently in the planning stage.
“At a time when the ACCC is forecasting domestic gas shortfalls, our Narrabri project, which is 100 per cent committed to the domestic market, will inject new supply into southern domestic markets and put downward pressure on gas prices for New South Wales businesses, manufacturers and families,” Woods says.
“It will make more gas available to cover peak demand periods, especially in circumstances where gas power generators are called on unexpectedly to replace wind, solar and coal outages, as we have seen this winter.”
ARENA supports efforts for decarbonisation
The Port Kembla Steelworks (PKSW) Renewables and Emissions Reduction Study will consider the technical and economic viability of several decarbonisation options for the plant. This initial project will explore two main pathways to lowering emissions at Port Kembla.
Smart Carbon Usage refers to opportunities to substitute coal with renewable carbon sources in the steel production process. The project includes a series of plant trials in which BlueScope will investigate the potential to partially replace coal that is injected into the blast furnace with renewable biochar.
The project will provide valuable insights into the potential pathways to decarbonise steel production at PKSW.
BlueScope’s initial insights will be captured in a series of publicly released findings to maximise the benefit for a wider set of stakeholders.
ARENA CEO Darren Miller says reducing emissions from making steel was a priority for Australia.
“To meet our net zero targets, Australia needs to reduce emissions from the iron ore mining sector and steel industry,” says Miller.
“More than seven per cent of the world’s emissions come from steelmaking and these emissions have proven difficult to abate. We’re pleased to be partnering with an Australian company motivated to solve this decarbonisation challenge.”
“As the world’s largest exporter of iron ore, Australia has an important role to play in lowering emissions across the steel value chain. We’re excited by the insights this project will provide. This is a positive step toward building a low emissions steel industry here in Australia.”
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This article is featured in the January edition of The Australian Pipeliner.