APA Group · ASX:APA
APA — APIA Seminar, Perth 2005
25 slides from APA's conference presentation, Jun 24, 2005
Slide 1: APIA Seminar: An Owners Perspective of the Pipeline Industry in WA
APIA Seminar An Owners Perspective of the Pipeline Industry in WA – Implications of Gas Storage Perth 24 June 2005 --------- David A. King General Manager - WA Australian Pipeline Trust (APA)
Slide 2: Presentation Summary
Presentation Summary • Australian Pipeline Trust in WA • Goldfields Gas Pipeline • Parmelia Pipeline • Mondarra Gas Storage • APA Strategy and Conclusions 2
Slide 3: Gas Pipelines 2005
Gas Pipelines 2005 APA pipelines TTP Other pipelines AGT CGP GGT RBP MWP MSP CWP APA Pipelines 2005 PGP Amadeus Gas - AGT Carpentaria Gas Transmission - CGP Central West - CWP Goldfields Gas Transmission - GGT Mid West Pipeline - MWP Moomba to Sydney - MSP Parmelia Gas - PGP 7 3 to Brisbane – RBP Ro
Slide 4: Western Australia
Western Australia Broome NORTH WEST SHELF Port Hedland Dampier Onslow Newman GOLDFIELDS GAS TRANSMISSION Carnarvon PIPELINE Mt Magnet DONGARA Geraldton PROCESSING Windimurra FACILITY Kalgoorlie PARMELIA PIPELINE MONDARRA PERTH Esperance FACILITY 4
Slide 5: Portfolio Diversification – WA 39%
Portfolio Diversification – WA 39% APA 2004 Revenues APA 2004 Revenues Pro forma pre-acquisition Pro forma post-acquisition Other Other Parmelia 4% 3% 7% GGT MSP 22% 32% (55% SCP MSP revenue 41% share) (100% SCP GGT revenue 32% share) CGP 12% AGT 7% AGT RBP CGP RBP 9% 12% 9% 10% Note: GGT revenues s
Slide 6: APA WA Pipeline Ownership
APA WA Pipeline Ownership AUSTRALIAN PIPELINE TRUST (APA) 100% 50% Southern Cross Alinta DEWAP Western Power Pipelines 88% 12% 100% 50% APA Mid West GGT JV Commercial Parmelia Pipeline JV Manager Assets Agility Mid West Goldfields Gas Operations Pipeline Pipeline Manager 6
Slide 7: Goldfields Gas Pipeline (GGT)
Goldfields Gas Pipeline (GGT) Key Statistics: Port Hedland • 1,380 km pipeline (16”-14” dia.) Dampier Karratha • Inlet near CS1 on DBNGP Yarraloola Exmouth Tom Price • Capacity Paraburdoo Newman - Fully compressed: 167 TJ/d Ilgarari GGT Pipeline - Reserved capacity: 100 TJ/d Carnarvon Three Rivers •
Slide 8: Goldfields Gas Pipeline: Growth Prospects
Goldfields Gas Pipeline Growth Prospects Projects under active consideration: – Magellan Lead – Esperance Lateral – Hamersley Iron Ore at Paraburdoo – Murrin Murrin Expansion Spot market development: – Arising from potential shortage of gas transportation on DBNGP – Power generated in Kalgoorlie are
Slide 9: Goldfields Gas Pipeline: Code Process
Goldfields Gas Pipeline Code Process 1999: Access Arrangement submitted by GGT ERA published Amended Draft Decision in July 2004 Revised Access Arrangement lodged by GGT in November 2004 Final decision published 17 May 2005 requiring further revisions GGT submitted revised Access Arrangement on 17 J
Slide 10: Parmelia Pipeline
Parmelia Pipeline Experienced Suppliers to SW Market 30 years experience, covering whole gas chain: production, transportation, distribution, and supply Highlights: – Commercialisation of Mondarra gas storage facilities – New lateral connections to industrial customers and distribution network – Gen
Slide 11: Parmelia Pipeline: Operation Overview
Parmelia Pipeline Operation Overview Capacity of pipeline 70 TJ/d, expandable up to 120 TJ/d Pipeline traverses industrial corridors of Perth and Kwinana through to Pinjarra Currently connected to major WA gas users – Alcoa and Western Power – Western Mining – BP, TiWest and Hismelt Connected to bot
Slide 12: Parmelia Pipeline: Unprecedented Activity in Perth Basin
Parmelia Pipeline Unprecedented Activity in Perth Basin ARC currently involved in an active exploration and drilling program – Dongara # 32, 33, and 34 Origin / ARC joint venture expected to drill several new wells in the near future e.g. Zyris, Hakia and Corybas gas discovery Origin to complete dri
Slide 13: Parmelia Pipeline: Access into Perth Distribution System
Parmelia Pipeline Access into Perth Distribution System Parmelia first gas pipeline in WA and sole supplier 1972-1985, discontinued due to commissioning of DBGNP First re-connection completed July 2000 into northern distribution network Permanent interconnection agreement into southern Perth expecte
Slide 14: Parmelia Pipeline: Strong Growth Prospects
Parmelia Pipeline Strong Growth Prospects Alinta Network Interconnection – Alinta Network distributes approximately 30 PJ a year to 400,000 customers – Parmelia has capability to deliver gas to customers via • Interconnection to Perth northern network • Proposed interconnection to Perth southern net
Slide 15: Mondarra Gas Storage Facility
Mondarra Gas Storage Facility Operation Overview Since 1996, WA’s only natural gas storage facility Original reservoir 20 PJ of gas at 2,800m depth and 20 MPa Connected to both Parmelia and DBNGP Load management and peaking services Expected working capacity of between 6-9 PJ Emergency gas supply In
Slide 16: Mondarra Gas Storage Facility: Current Development
Mondarra Gas Storage Facility Current Development Features Tailored to suit customer requirements Deliverability: currently up to 10 TJ/d Injectivity: currently up to 10 TJ/d Further development potential to 150 TJ/d Mondarra Junction: by 2005, capacity to increase to 100 TJ/d 16
Slide 17: Mondarra Gas Storage - Phase II Development
Mondarra Gas Storage - Phase II Development To MARKET From DBNGP or Parmelia To or from Storage Metering Dehydration Well Compression Reservoir Reservoir Separation 17
Slide 18: Mondarra Gas Field
Mondarra Gas Field • The Mondarra-1 Gas Field is a well defined reservoir which has good closure on all sides. • Historic production performance has given a good correlation with mapped size. 18
Slide 19: Mondarra Gas Field Structure
Mondarra Gas Field Structure • The new seismic interpretation places the gas accumulation in a steeply dipping fault- block bounded to the west & north by major normal faults, with Mondarra-1 near the crest and NW limit of the field. • Uncertainty in the location of the main bounding faults is now c
Slide 20: Worked Example – Load Management
Mondarra Gas Storage Facility Worked Example – Load Management Assume annual average daily capacity of 50 TJ/d (~220 MW) Peak daily requirement 60 TJ/d (~260 MW) Assume Pipeline Transport tariff of $1.20 / GJ Pipeline Reservation/Commodity split 90%/10% Annual Reservation cost = 60,000 GJ x $1.20 x
Slide 21: Worked Example – Emergency/Peaking Supply
Mondarra Gas Storage Facility Worked Example – Emergency/Peaking Supply 1,000,000 800,000 M onthly Cost ($) 600,000 Storage 400,000 DBNGP Oil 200,000 Gas Storage has least cost - 0 50 100 150 200 250 300 350 Storage facilities usage (days per year) 21
Slide 22: APA Strategy in WA
APA Strategy in WA Major Player Gas Transport - Expand our business through opportunities that increase utilisation and expansion of our existing pipelines. Storage - Develop and implement opportunities to maximise utilisation of the Mondarra Storage facility as part of the energy equation for the S
Slide 23: APA Strategy in WA
APA Strategy in WA Major Player Gas Processing - Explore gas processing opportunities where skid mounted processing plant backed by APA’s balance sheet can make projects a reality (e.g. CSM in Queensland). Power Generation ? - Capitalise on the ability of utilising Mondarra Storage and the Parmelia
Slide 24: Conclusion
Conclusion APA is an Australian company, investing in WA for the long term Goldfields Pipeline serves a world class minerals province - an important asset APA is expecting approval by the ERA of GGT’s resubmitted Access Arrangement – keen to get on with running the business Parmelia Pipeline faces a
Slide 25: We Deliver
We Deliver www.pipelinetrust.com.au
Australian Pipeline Trust (APA) — APIA Seminar, Perth 2005 on 6ix