Slide 1: New pipeline developments
For personal use only New pipeline developments Linking Australia’s gas markets for improved energy security Rob Wheals, Group Executive Transmission SEAAOC, Darwin 20 August 2014
Slide 2: About APA Group
About APA Group APA is Australia’s largest gas infrastructure business For personal use only APA (August 2014) Market A$6.4 billion APA is an integrated operating business with direct capitalisation management and operational control over its assets S&P/ASX 50 MSCI All World Index; and investments F
Slide 3: APA – Australia's largest gas pipeline owner
APA – Australia’s largest gas pipeline owner For personal use only Darwin Gladstone Moomba Brisbane Perth Sydney Adelaide APA natural gas pipelines Other natural gas pipelines Melbourne Gas storage Gas production APA Group, August 2014 3
Slide 4: APA in the Northern Territory and east coast
APA in the Northern Territory and east coast East coast grid For personal use only Darwin > 7,000 km across 5 states and territories Configuring pipelines to operate as single network system Gladstone Moomba Brisbane Northern Territory Moomba 2,000 km gas pipelines Sydney Long term presence
Slide 5: NT link background
NT link background Strategic initiative to connect NT to For personal use only Darwin the East Coast Gas Grid – Flexible energy supply across the system, regardless of input/exit points Announced feasibility study for NT Link project and commitment of Gladstone $2 million (Feb 2014) – Assessing
Slide 6: East coast gas market – supply challenges
East coast gas market – supply challenges More than tripling of east coast demand For personal use only due to LNG exports Supply sufficient for east coast demand for ~ 20 years BUT does not allow for any increase in demand, or any decline in reserves, or any demand beyond 20 years Source: AEM
Slide 7: Northern Territory gas resource
Northern Territory gas resource >200 TCF(1) of gas resources For personal use only Darwin 3 primary potential supply zones: Offshore NT Producing assets and staged developments in place ~60 TCF of identified reserves East NT Gladstone Unconventional gas under exploration 5+ years from fu
Slide 8: NT Link Project Benefits
NT Link Project Benefits Encourages exploration & production For personal use only Darwin to meet growing demand Opens new markets & supply competition Seamless transport between Timor Sea, Bass Strait, Sydney and Gladstone Gladstone Significant additional security of supply – East coast gas
Slide 9: Feasibility study update
Feasibility study update Infrastructure For personal use only Preliminary assessment of several possible pipeline routes – evaluating environmental considerations – determining whole of project construction cost estimates – route flyovers commenced (August 2014) Detailed engineering – 3 pipeline
Slide 10: Pipeline route options
Pipeline route options A number of viable pipeline options … For personal use only Darwin each with its own challenges and opportunities Option A Option B Option C Location To Mt Isa To Moomba To CGP Gladstone Length 620 km 1,100 km 700 km Water 6 11 9 crossings Brisbane Moomba Flood (1) 25,000 35
Slide 11: Development considerations
Development considerations Focused on identifying the most For personal use only Darwin efficient and commercially viable link with the east coast grid Working with upstream and downstream parties to determine the most likely gas flow path Gas delivered to the east coast grid Gladstone can be
Slide 12: Development considerations: Potential pipeline option – RED
Development considerations Potential pipeline option – RED For personal use only Darwin Key gas sources – offshore and eastern NT Gladstone Moomba Brisbane Sydney Adelaide Melbourne APA Group, August 2014 12
Slide 13: Development considerations: Potential pipeline option – BLUE
Development considerations Potential pipeline option – BLUE For personal use only Darwin Gas sourced from all three locations (offshore, eastern NT and southern NT) Gladstone Moomba Brisbane Sydney Adelaide Melbourne APA Group, August 2014 13
Slide 14: Development considerations: Potential pipeline option – GREEN
Development considerations Potential pipeline option – GREEN For personal use only Darwin Key gas sources – eastern NT and southern NT Pipeline travels through existing producing fields Gladstone Moomba Brisbane Sydney Adelaide Melbourne APA Group, August 2014 14
Slide 15: Conclusion
Conclusion Strategic initiative providing flexible energy supply between Timor Sea, Bass For personal use only Strait, Sydney and Gladstone Feasibility study well underway – expected to be completed in FY2016 Focus is to identify the most efficient and commercially viable link with the east co
Slide 16: Delivering Australia's Energy
For personal use only Delivering Australia’s Energy For further information contact Sam Pearce NT Link Project Director, APA Group Tel: +61 2 9693 0000 E-mail: sam.pearce@apa.com.au or visit APA’s website www.apa.com.au