I am very proud of the achievements of APIA over the last two years, which include:
- The preparation and release of the APIA Upstream PE Gathering Networks Code of Practice;
- The significant advancement of the Engineering Training Program including the Competency and APIA Guide documents;
- The establishment of the Energy Pipelines Co-operative Research Centre;
- The growth in activity and interest in the YPF;
- The formation of a new dedicated training committee;
- The completion of the APIA Safety Guidelines;
- The establishment of the combined Health, Safety & Environment Committee;
- The successful advocacy of pipeline policy objectives in Canberra; and,
- The successful APIA events over the last two years that have set attendance records and brought the industry together to facilitate business opportunities for our members.
The Association’s membership has grown from 249 to 283 full members during my two-year term, which demonstrates that APIA is the glue that holds this industry together and makes it such a rewarding industry to work in.
Of course, I don’t accept the credit for these significant achievements, which I believe should be directed towards our fantastic secretariat, our professional Board of Directors and, of course, importantly, the dedicated members who have contributed their valuable time to the various committees and projects that have been instrumental in the achievements of APIA. My thanks to all of you for your support.
I am sure that APIA will continue to be a strong association into the future, mainly because the association has a culture of listening to the needs of the members and providing value in an increasing number of ways. While some members are facing real challenges, the overall success of APIA is also certainly helped by the healthy outlook for the pipeline industry.
Logically, gas is an obvious answer in the medium to long term to supply the world’s growing energy demands. With the decline in availability of crude oil and natural gas from conventional fields, coal seam methane and shale gas are well placed to step in to meet the growing demands. Australia has extensive reserves of CSG and is actively looking for shale gas. It is predicted that Australia’s LNG exports will increase by 400 per cent by 2035. The four major CSG-to-LNG projects in Queensland alone propose an estimated $20 billion to be spent on pipeline infrastructure.
The successful development of CSG is very important to the prosperity of our nation. Just one of the CSG-to-LNG projects is estimated to generate $32 billion in additional revenue for Queensland in its first decade. The success of these developments largely depends on the work proceeding in a manner that works with farming and the environment.
Perhaps because gas is such a logical solution, the Government believes simply that gas will win by default. Unfortunately, some of the overt Government support for renewables and coal, combined with some elements of the carbon tax legislation, has the potential to slow investment in gas. This is an area where APIA is very active in protecting the interests of the industry through participation in the policy debate and providing input to proposed legislation.
Most industry analysts are suggesting that the price of gas in Australia will increase as a result of the carbon tax and LNG exports. This raises concerns that investment in gas-fired electricity generation in Australia may be held back by uncertainty in both the cost of gas and the carbon tax on emissions (if and when it comes). Even with these concerns, Government modelling predicts that gas-fired electricity will increase by between 150 and 300 per cent over the period to 2050.
All of these indicators demonstrate that the outlook for pipelines in Australia is very promising, as is the outlook for APIA. I am confident that the next President of APIA will provide the necessary leadership to steward the industry through this growth phase and competently represent the interests of all members. I look forward to working with the new President and I trust you will offer the same support to him as you have provided to me over the last two years.
