This next step, if approved by the Joint Venture participants, is likely to take 12 – 18 months to complete and would be an important step forward for this major pipeline project and for the Australian pipeline industry in general.
Australia’s pipeline industry has watched this project intensely for a number of years and has maintained interest through the peaks and troughs inherent in major development projects of this kind.
As supporters of Australia’s pipeline industry, we are all very aware of the particular challenges faced by pipeline developers of projects of this magnitude. The challenge in securing foundation customers for natural gas, particularly when the gas is remote from our relatively thin markets, is a daunting one that is often underestimated by policy makers in this country. Historically the developer-customer relationship for new development activity in this country has often been somewhat of a chicken and egg situation. This situation was summed up in comments attributed to the PNG Government’s Mineral Resources Development Corporation who was quoted as saying, “we’ve argued for some time that once we commit, that certainty will attract more customers to commit, too.”
APIA does not attempt to pick winners in the infrastructure development stakes – if this or any similar project succeeds it will do so against stiff opposition in the form of competing gas suppliers and pipeline infrastructure proposals. However, we wish the project well and APIA remains very supportive of the opportunities the project offers for secure, reliable and long term supply of natural gas to Australia’s growing markets.
The project in many ways characterises APIA’s mission: “To lead the development of a dynamic, market driven Australian pipeline industry which benefits the Australian economy, regional development and environmental outcomes.”
The Highlands Gas Project exemplifies all these features. In turn it highlights the ongoing importance – despite the many changes which have occurred in our industry over recent years – of APIA’s goals in promoting pipelines, improving the regulatory environment faced by owners and developers and providing information and documentation in the areas of technical standards, design, environmental performance and other areas of long-time pipeline performance. A very wide range of skills are required to meet these needs and APIA – drawing as it does on a very diverse membership base of committed and talented corporations and individuals – has been equal to the many tasks set for our pipeline industry
In the final analysis, the final decision will rest with customers and the value they place on long term, reliable, environmentally beneficial supply of natural gas. The challenges faced by pipeline developers in this respect should not be underestimated, but the long term rewards to the nation will be immense. We wish the commercial parties the very best in their future deliberations.
Finally the industry farewells two leading members of the pipeline community with the passing away recently of George Tredinnick and Gerald Minson. I first met George when as a young pipeliner I was privileged to attend APIA functions and conventions in the “˜80s. George contributed mightily to the administration of the Association to ensure its future success.
Gerald as partner in Prentice Brothers and Minson (PBM) was involved in the resurgence of long distance pipelines back in the 1980s (Jackson – Moonie) and was a cultured and astute business man who certainly achieved recognition by his peers in both the pipeline and construction sectors. We send our condolences to the family, relatives and colleagues of these two gentlemen.
