Economic Regulation Authority www.era.wa.gov.au Western Australia - - PowerPoint PPT Presentation

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Economic Regulation Authority www.era.wa.gov.au Western Australia - - PowerPoint PPT Presentation

Economic Regulation Authority www.era.wa.gov.au Western Australia The Economics and Regulation of Gas Pipelines K Peter Kolf General Manager Economic Regulation Authority 10 August 2005 Introduction Pipeline Operations Pipeline


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SLIDE 1

The Economics and Regulation of Gas Pipelines

K Peter Kolf General Manager

Economic Regulation Authority

10 August 2005

Economic Regulation Authority

Western Australia

www.era.wa.gov.au

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SLIDE 2

Introduction

  • Pipeline Operations
  • Pipeline Design
  • Looping
  • Pressure management
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SLIDE 3

AlintaGas Distribution Pipeline Networks

Owner: AlintaGas Networks Pty Ltd Comprises approx. 10,500 km of Gas distribution pipelines and associated facilities. There are two networks in Albany and Kalgoorlie that are not covered by the Code.

Access Arrangement Approved 18/7/2000 Review due 1/4/2004

Geraldton Lateral

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SLIDE 4

Dampier to Bunbury Natural Gas Pipeline (DBNGP) Carnarvon Lateral

Dampier to Bunbury Natural Gas Pipeline

Owner: Epic Energy (WA) Transmission Pty Ltd Commissioned: 1984 Length: 1845 km Diameter: 660 mm Capacity: 600 TJ/d Average MDQ: 530 TJ/d

Final Decision on proposed Access Arrangement issued 23/5/03. Assessing the Revised Access Arrangement received 8/8/03

Geraldton Lateral

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SLIDE 5

Goldfields Gas Pipeline

Owners: Southern Cross Pipelines Australia Pty Ltd, Southern Cross Pipelines (NPL) Australia Pty Ltd and Duke Energy International Commissioned: 1996 Length: 1378 km Diameter: Telescopic 400 mm to 350mm Capacity: 100 TJ/d Average MDQ: 98 TJ/d

Draft Decision is being amended. Application for revocation lodged with NCC on 27/3/2003

Goldfields Gas Pipeline (GGP) Newman Lateral Dampier to Bunbury Natural Gas Pipeline (DBNGP) Carnarvon Lateral Geraldton Lateral

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SLIDE 6

Tubridgi Pipeline System

Owner: SAGASCO & Pan Pacific Petroleum Comprises two pipelines the Griffin and the Tubridgi Pipelines. Tubridgi Pipeline

Commissioned: 1992 Length: 87.5 km Diameter: 168 mm Capacity: 30 TJ/d

Griffin Pipeline

Commissioned: 1993 Length: 87 km Diameter: 273 mm Capacity: 90 TJ/d

Combined Average MDQ

  • f about 30 TJ/d

Access Arrangement approved on 19/10/2001 Review due 19/1/2006

Tubridgi Pipeline System Goldfields Gas Pipeline (GGP) Newman Lateral Dampier to Bunbury Natural Gas Pipeline (DBNGP) Carnarvon Lateral Geraldton Lateral

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SLIDE 7

Kambalda Lateral

Owner: Southern Cross Pipelines Australia Pty Ltd Commissioned: 1996 Length: 44 km Diameter: 219 mm Capacity: 15 TJ/d Throughput: 12 TJ/d Extension of time to submit an Access Arrangement granted to 1 July 2004

Tubridgi Pipeline System Kambalda Lateral Goldfields Gas Pipeline (GGP) Newman Lateral Dampier to Bunbury Natural Gas Pipeline (DBNGP) Carnarvon Lateral Geraldton Lateral

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SLIDE 8

Tubridgi Pipeline System Goldfields Gas Pipeline (GGP) Newman Lateral Kambalda Lateral North West Shelf Pipeline Griffin Offshore Pipeline Parmelia Pipeline Mid West Pipeline Pilbara Energy Project Gas Pipeline (PEPL) Thevenard Island Pipeline Harriet Pipelines Cape Lambert Pipeline Carnarvon Lateral

Pipelines Not Covered:

  • Parmelia Pipeline
  • Mid West Pipeline
  • Harriet Pipelines
  • Pilbara Energy Project

Pipeline

  • Cape Lambert Pipeline
  • Various GGP laterals
  • GGP to Mt Keith
  • GGP to Leinster

Power Station

  • GGP to Kalgoorlie

Power Station

Pipelines not covered

  • r regulated

by the Code

Unprocessed gas pipelines are not regulated by the National Gas Agreement.

Dampier to Bunbury Natural Gas Pipeline (DBNGP) Carnarvon Lateral Geraldton Lateral

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SLIDE 9

Schematic of Pipeline Capacity

Total Capacity Interruptible Capacity (92%) Firm Capacity (98%) Spot Capacity Spot Capacity Utilised Firm Capacity Time

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SLIDE 10

Operational Surcharges

  • Peaking Surcharge (hourly)

– 20% MDQ margin

  • Overrun Surcharge (daily)

– 10% MDQ

  • Nominations Surcharge (daily)

– +/- 10% MDQ

  • Balancing Surcharge (daily on-going

accumulation)

– +/- 8% MDQ margin

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SLIDE 11

Operational Services

  • Peaking Service (hourly)
  • Overrun Service (daily)
  • Nominations Service (daily)
  • Park and Loan (daily on-going accumulation)
  • Secondary market

– Spot – Bare transfer – Transfer of capacity

(Subject to availability)

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SLIDE 12

Pipeline Design

  • Pipeline Diameter

– Future demand – Length of the pipeline – Distribution of load – Operating pressure (MAOP) – Thickness of pipeline (material & pressure)

  • Compression

– Location (determines power and fuel usage)

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SLIDE 13

Steps in Pipeline Development

  • 1. Free Flow
  • 2. Additional Compression
  • 3. Additional Compression & Looping
  • 4. Looping
  • 5. Looping and additional compression

Repeat from Step 2

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SLIDE 14

Pipeline Development Cycle

Development Cycle of Pipeline

Capacity TJ/d Cost per $/GJ Compression Looping Compression Ave Cost Compression & Looping Compression & Looping

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SLIDE 15

Principle of Looping

  • Bigger diameter
  • Higher Max Allowable Op Pressure (MAOP)

  • nce fully looped can be operated

independently

  • Looping of each section of the pipeline

(between 2 compressor stations) starts at the beginning of the section

  • Objective is to bring the discharge pressure of

the downstream compressor to the MAOP

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SLIDE 16

Pipeline Development Cycle

Development Cycle of Pipeline

Capacity TJ/d Cost per $/GJ Compression Looping Compression Ave Cost Incremental Cost Compression & Looping Compression & Looping

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SLIDE 17
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SLIDE 18

Pressure Profile

Distance

C

  • m

p r e s s i

  • n

Inlet Location CS 1 CS 2 CS 4 Minimum contracted delivery pressure CS 3 Location of Contracted Load

MAOP

Looping