Australia's natural gas industry has marked a string of milestones.
Among those achievements:
- South Australia received its first supplies of gas from the Southwest Queensland pipeline project. The $150 million (Australian) project, which started up this month, has been hailed as a significant step toward unfettered interstate gas trade in Australia (OGJ, July 19, 1993, p. 14).
- Woodside Offshore Petroleum Pty. Ltd. let three major contracts with a combined value of $124 million related to the Northwest Shelf liquid petroleum gas export project.
- Woodside and partners last month passed the halfway point in repairing damaged piles of the Goodwyn A gas platform, part of the Northwest Shelf liquefied natural gas export project expansion. The price tag for Goodwyn A repairs rose another $30 million to an expect $280 million.
- BHP Petroleum Pty. Ltd. said it is interested in buying two of the biggest gas fired power plants in eastern Australia. The two plants, in Victoria, have combined capacity of about 12% of the state's total electrical power generating capacity.
BHP has large volumes of uncommitted natural gas reserves in Bass Strait. Currently, most of Victoria's electricity is generated by brown coal fired power stations, but BHP believes there is an opportunity to use its gas reserves as an alternative company is prepared to undertake the role of power station investor as well as fuel supplier.
QUEENSLAND-SOUTH AUSTRALIA GAS
Under a supply arrangement, South Australia will take 28.5 bcf/year, about one third of its current requirements, from Southwest Queensland fields via the pipeline laid across the vast Cooper Creek floodplain to treatment and distribution facilities at Moomba in South Australia's far northeast comer.
The original 10 year contract, covering a total of 285 bcf, has been extended following the Queensland government's agreement to sell another 114 bcf and consider selling a further 123.5 bcf later. The agreements open the way for extending the 20 year old New South Wales contract that supplies Syndey, Canberra, Newcastle, and Wollongong with natural gas via Moomba. The original NSW contract approaches expiration near 2000.
Only 10% of proved Southwest Queensland reserves are committed to South Australia.
The producing group, led by Santos Ltd., also is discussing contracts to supply Brisbane and coastal Queensland consumers. And Santos thinks there is more gas to be found in the region.
NORTHWEST SHELF CONTRACTS
Woodside, operator for a six company group in the Northwest Shelf gas development/LNG export project, let a $67 million contract for design, fabrication, and construction of two LPG storage tanks at the Burrup Peninsula plant to a joint venture of Chicago Bridge & Iron and Baulderstone Hornibrook.
A second contract, for $40 million, went to John Holland Construction & Engineering for design and construction of a jetty to serve LPG tankers.
Woodside let the third contract, for $17 million, to a venture of Condreco and Westham Dredging Co. to dredge the surrounding jetty area.
Last fall, a $56 million contract went to ICF Kaiser International for engineering and design of compressor and chiller units and other work related to the LPG plant (OGJ, Nov. 8, 1993, p. 40).
Northwest Shelf partners late last year approved a $915 million project to develop Wanaea/Cossack oil and gas fields near the Northwest Shelf producing gas complex (OGJ, Oct. 11, 1993, p. 31). The green light for Wanaea/Cossack development underpinned viability of Northwest Shelf LPG extraction and export.
Northwest Shelf partners are Woodside, BHP Petroleum (Northwest Shelf) Pty. Ltd., BP Developments Australia Ltd., Chevron Asiatic Ltd., Japan Australia LNG (MIMI) Pty. Ltd., and Shell Development (Australia) Pty. Ltd., each with a one sixth interest.
GOODWYN REPAIRS
Woodside repaired the damaged primary piles for the Goodwyn A gas platform, allowing insertion of secondary piles through them and deeper into the seabed to be grouted into place. Ten insert piles have been installed on the platform, leaving six more to be driven. The primary piles with the worst damage have now been repaired.
The piles were damaged during early piling operations, although a fun explanation of the cause has not been given. Repairs have been carried out using a specially designed jacking tool run down the inside of the primary piles to force the tips back into trim.
Costs have jumped because of delays in the repair program. Current start up date is now projected to be next November. Woodside expects to recover repair costs from insurers.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
