Oz Pipe Operator Signs Up Major Customers
Australian gas pipeline operator Sea Gas December 21 announced it has signed multiple agreements with major users and retailers for the transportation of gas to southern Australia from January 2019.
The contracts run for average terms of approximately five years and mark the first time significant capacity has been offered outside the foundation contracts since the Sea Gas pipeline between Port Campbell and Adelaide was first operational in January 2004, the company said.
Sea Gas CEO Wendy Oldham said the company had now locked in firm capacity bookings for more than 80% of the pipeline system in the near term, with some contracts extending well beyond 2023. “This is an excellent outcome for Sea Gas and is another solid step towards a more secure energy supply in South Australia and Victoria,” Oldham said. “The new contracts follow our first public release of existing capacity in 15 years which created a unique opportunity for companies seeking firm capacity to service southern Australian markets”.
“Most of our capacity is expected to be utilised in fuelling gas-fired power stations in South Australia, as well as servicing industrial and residential gas consumers in both South Australia and Victoria. The gas-fired power provides critical baseload generation and energy security to the region, complementing renewable energy.”
Sea Gas said it recently completed a refurbishment of its Miakite Compressor Station in Victoria to meet summer and winter peak demands across the system. The 700 km pipeline system from Victoria to South Australia commenced operation in January 2004, completing the south-eastern Australia gas transmission grid linking Sydney, Melbourne and Adelaide with gas supplies from fields in both South Australia and Victoria.
Australia’s biggest gas infrastructure firm APA owns 50% stake in Sea Gas while the remaining 50% is held by Rest, [Retail Employees Superannuation Trust], an industry superannuation fund. APA also provides maintenance services for the Sea Gas asset portfolio.
APA’s managing director Mick McCormack in a separate statement said, “Today’s announcement by Sea Gas is a great outcome. It shows the key role gas has to play in Australia’s transition to a lower carbon future, with South Australia having the highest renewable energy target of all the states. The Sea Gas pipeline continues to play a significant role in the transport of gas to various offtakes and interconnected pipeline systems in South Australia and Victoria.”