nsw gas networks

NSW gas networks

Performance report 2007-08

Publisher

NSW Department of Water and Energy Level 17, 227 Elizabeth Street GPO Box 3889 Sydney NSW 2001T 02 8281 7777 F 02 8281 [email protected]

NSW gas networks Performance report 2007-08

ISBN 978 1 921546 23 5

© State of New South Wales through the Department of Water and Energy, 2009

This work may be freely reproduced and distributed for most purposes, however some restrictions apply. Contact the Department of Water and Energy for copyright information.

Disclaimer: While every reasonable effort has been made to ensure that this document is correct at the time of publication, the State of New South Wales, its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document.

DWE 09_121

NSW gas networks. Performance report 2007-08

Contents

Abbreviations......................................................................................................................................... 1

Executive summary ............................................................................................................................... 2

Natural gas networks..................................................................................................................... 2

High-pressure pipelines (unlicensed)............................................................................................ 2

LPG networks................................................................................................................................ 2

Conclusions................................................................................................................................... 3

Introduction............................................................................................................................................ 4

Limitation of this report .................................................................................................................. 4

Report structure............................................................................................................................. 5

1. Network asset information............................................................................................................. 6

1.1 Annual reporting requirements............................................................................................ 6

1.2 Key performance indicators ................................................................................................ 6

1.3 Natural gas network – asset information ............................................................................ 6

1.4 New regions ........................................................................................................................ 8

1.5 Conclusion .......................................................................................................................... 8

2. Network integrity and safety information ....................................................................................... 9

2.1 Annual reporting requirements............................................................................................ 9

2.2 Key performance indicators ................................................................................................ 9

2.3 Natural gas networks performance................................................................................... 11

2.4 Conclusion ........................................................................................................................ 11

3 Network reliability and consumer related matters ....................................................................... 12

3.1 Annual reporting requirements.......................................................................................... 12

3.2 Key performance indicators .............................................................................................. 12

3.1 Conclusion ........................................................................................................................ 15

4 High pressure pipeline activities (unlicensed pipelines).............................................................. 16

4.1 General ............................................................................................................................. 16

4.2 Accidents, escapes and ignitions...................................................................................... 16

4.3 Integrity assessment/monitoring ....................................................................................... 17

4.4 Operational performance .................................................................................................. 17

ii | NSW Department of Water and Energy, June 2009


Appendix A – Natural gas industry in NSW......................................................................................... A1

Natural gas networks................................................................................................................... A1

Jemena Gas Networks (NSW) Ltd.................................................................................... A3

ActewAGL Distribution (ActewAGL).................................................................................. A3

Country Energy Gas ......................................................................................................... A3

Central Ranges Pipeline Pty Ltd ....................................................................................... A3

Albury Gas Company........................................................................................................ A3

APT Allgas Energy Pty Ltd................................................................................................ A4

Appendix B – LPG Networks in NSW and networks performance data.............................................. B1

Wesfarmers Kleenheat Ltd ............................................................................................... B2

Origin Energy LPG Ltd...................................................................................................... B2

Elgas Reticulation Ltd ....................................................................................................... B2

LPG networks – Asset Information.............................................................................................. B2

Conclusion................................................................................................................................... B5

Tables

Table 1.1: Natural gas networks in NSW.......................................................................................... 6

Table 2.1: Network integrity and safety for NSW............................................................................... 9

Table 3.1: Network consumer numbers ........................................................................................... 12

Table 3.2: Network reliability and safety information ....................................................................... 13

Table 4.1: Number of accidents, escapes and ignitions .................................................................. 16

Table 4.2: Integrity assessment/monitoring ..................................................................................... 17

Table 4.3: Operational performance ................................................................................................ 17

Table B.1: Asset information for LPG networks 2007-08 ................................................................. B2

Table B.2: Customer information for LPG networks......................................................................... B3

Table B.3: Network integrity and safety information – LPG networks 2007-08................................ B4

Figures

Figure 1.1: Total network length in NSW ............................................................................................ 7

Figure 1.2: Total network growth in NSW ........................................................................................... 7

Figure 1.3: UAFG in NSW................................................................................................................... 8

Figure 2.1: Third party reported escapes in NSW............................................................................. 10

Figure 2.2: Mechanical damage in NSW........................................................................................... 10

Figure 2.3: Leakage surveys............................................................................................................. 11

Figure 3.1: Natural gas consumers in NSW...................................................................................... 13

iii | NSW Department of Water and Energy, June 2009


iv | NSW Department of Water and Energy, June 2009

Figure 3.2: New customers connected in NSW ................................................................................ 14

Figure 3.3: Loss of supply ................................................................................................................. 14

Figure 3.4: Incidents in NSW ............................................................................................................ 15

Figure 3.5: Incidents/emergencies responded to in 60 minutes ....................................................... 15

Figure A.1: The NSW natural gas supply chain ................................................................................ A1

Figure A.2: Location of Natural gas networks in NSW ...................................................................... A2

Figure B.1: Location of LPG networks in NSW.................................................................................. B1

Figure B.2: Relative sizes of LPG networks ...................................................................................... B2

Figure B.3: LPG network length ........................................................................................................ B3

Figure B.4: UAFG in NSW LPG networks ......................................................................................... B3

Figure B.5: LPG networks customer numbers................................................................................... B4

Figure B.6: Leaks reported by third party .......................................................................................... B5

NSW gas networks 2007-08 performance report

Abbreviations

DWE Department of Water and Energy

GJ Gigajoule

IPART Independent Pricing and Regulatory Tribunal

kPa Kilopascal

KPI Key performance indicator

LPG Liquefied Petroleum Gas

MAOP Maximum Allowable Operating Pressure

MJ Megajoule

PJ Petajoule

SNG Simulated Natural Gas

TJ Terajoule

TLPG Tempered Liquefied Petroleum Gas

UAFG Unaccounted for Gas (difference between gas entering and leaving the system)

Table gas volumes

1,000 Megajoules (MJ) = 1 Gigajoule

1,000 Gigajoules (GJ) = 1 Terajoule

1,000 Terajoules (TJ) = 1 Petajoule (PJ)

Note: One standard cubic metre of natural gas is approximately 38 MJ in NSW.

This figure can vary as it relates to the heating value of the gas provided.

1 | NSW Department of Water and Energy, June 2009


Executive summary This annual performance report by the Department of Water and Energy (the Department) is on the operations of natural gas and liquefied petroleum gas (LPG) distribution networks operating in NSW. These networks are regulated under the NSW Gas Supply Act 1996 and the Gas Supply (Safety Management) Regulation 2002 (the Regulation). This report consolidates and comments on performance information and data voluntarily provided by the network operators.

Under the Regulation, Network Operators are required to prepare Safety and Operating Plans which are lodged with the Department and which govern their operations. The Safety and Operating Plans are then annually audited by an independent auditor on their performance against the Plan. This process is proving effective in providing safe and reliable networks with no public or network worker fatalities involved on networks since the Regulation was originally proclaimed in 1997.

Many factors influence network performance including network scale, age, construction materials and operating regimes. Comparisons in performance across networks and further, across networks in other jurisdictions, must consider the factors that differentiate the networks and influence their performance.

Key performance indicators (KPIs) have been developed by the Department to provide a mechanism for the analysis of the network operators’ performances against network integrity, reliability and safety.

Much of the data reported is compared on a year-to-year basis to identify changes in performance.

Natural gas networks The operators of the natural gas distribution networks have demonstrated a high level of performance in the network integrity, reliability, and safety aspects of operation. Reporting against the requirements was generally good, although it is expected that improvements in reporting will continue to occur.

The operators are constantly looking at ways to report fully in accordance with the requirements of the Regulation and the Department is working with the operators to achieve the best possible results. It may be noted that some of the figures have varied compared to earlier reports, a result of the Operators improving the way in which information is being recorded and how it is collated.

High-pressure pipelines (unlicensed) Jemena Gas Networks (NSW) Ltd, ActewAGL and Albury Gas have high-pressure pipelines (operating pressure >1,050 kPa) as part of their networks. The reporting requirements for the high-pressure assets have changes from the 2005-06 reporting period onwards. This means only two reporting periods have so far been collated and trends are hard to obtain with limited data.

LPG networks Due to the size and complexity of LPG networks, comparison of these to natural gas networks is inappropriate. The LPG network information received by the Department is shown in Appendix B and it provides a significant input to the Department’s compliance regime in this particular field of operation.

Generally LPG networks for their size are performing very well. Due to their small sizes, any incidents that do occur appear significant when related to customer numbers or size of network. The overall size of the LPG networks has decreased marginally with the decommissioning of one network. The figures for 2005-06 are not accurate as not all networks have provided information for this reporting period.

The Department intends to consult with LPG network owners to provide a more relevant reporting regime that differentiates from the significantly larger natural gas networks.



Conclusions

The state averages for the KPI indicate that all assets are being maintained to a very high standard. There is very little alteration from the previous reporting period figures.

The network has grown approximately 5.7 per cent over the four reporting periods.

The number of consumers connected to natural gas in NSW is over one million.

The number of consumers has grown over 10 per cent in the five year period and the number of new customers within this period is over 110,000 customers. However the last two reporting periods have the lowest number of new customers connected to the networks.

Unaccounted for Gas (UAFG) average for the state has reduced and is just above two per

cent. This figure is within meter error range and it would be impractical to try to produce a more accurate result.

The number of mechanical damage is the lowest recorded.

The Department continually reviews all annual reports received and has a policy to consult closely with the network operators in the ongoing evaluation of the reporting template.




Introduction

This is the annual performance report by the Department of Water and Energy (the Department) on the NSW operators of natural gas and liquefied petroleum gas (LPG) distribution networks.

This report consolidates performance information and data provided by each of the gas distribution

network operators for the 2007-08 operating year in accordance with the requirements of the Annual Reporting template for Gas Network Operators.

This report:

presents the Department’s interpretation and commentary on the information and data provided by the operators and compares overall performance

identifies areas of achievement and opportunities for improvement for the NSW industry as a whole

identifies opportunities to enhance the annual reporting requirements in order to improve the

consistency and value of information and data reported by the network operators.

Limitation of this report

There are currently nine licensed gas network operators NSW. Six of these reticulate natural gas while the remaining three operate distribution system that reticulates LPG. These are all regulated in similar

fashion under the Gas Supply Act 1996 and the annual reporting is carried out in accordance with the requirements of the Gas Supply (Safety Management) Regulation 2002.

The scope of this report relates primarily to the natural gas networks The LPG distribution network

operators have the same reporting requirements that the Department records and analyses but this data is detailed later in this performance report due to the small sizes and complexities of these particular networks. Licensed high-pressure transmission pipeline systems are not addressed in this report (refer to

the 2007-08 Licensed Pipeline report).

The Department also recognises the demonstrated efforts made by the networks on improving the rigour of information, data and reporting. Where possible, the Department has identified the limitations of the

information and data provided in this report.

It is recognised however that many factors can influence network performance including network size,

age, construction materials and operating regimes. Therefore, in attempting to draw comparisons of performance across networks, due consideration must be given to those factors which may influence the overall performance results and the manner in which information is gathered and reported.


Report structure

This performance report presents data provided by the distribution network operators in accordance with the annual reporting requirements prepared by the Department and has the following structure:

Chapter 1 Introduction.

Chapter 2 Network asset information.

Chapter 3 Network integrity and safety information data. It also presents KPIs, derived by the Department from the data provided, to allow more meaningful comparisons between different networks.

Chapter 4 Network reliability and consumer related matters data. It also presents KPIs,

derived by the Department from the data, to allow more meaningful comparisons between different networks.

Chapter 5 High-pressure (unlicensed) pipeline data.

APPENDIX A Natural gas industry within NSW.

APPENDIX B LPG Industry and networks reported data.




1. Network asset information

1.1 Annual reporting requirements

This chapter’s information is related to the networks size and capacity. The ability to transport the gas through its assets and define any possible amount of unaccounted for gas:

Network pipe length (by pressure class1).

Quantity of gas entering the network.

Quantity of gas delivered to custody transfer points.

New regions connected to gas supply.

The network operators are required to report network details by district or group of districts. For network

safety and reliability reasons, it is important that any trends occurring in a localised area are identified and reported, rather than being potentially lost in aggregated data. Aggregated data can average out to show good or poor results that can misrepresent localised information which is particularly important for

the larger networks.

Where a method of gathering information has changed immediate comparisons may not be an accurate way of accessing the performance of the asset owner or assets in which case this data has been

removed from the tables or graphs.

1.2 Key performance indicators Unaccounted for Gas (UAFG)

1.3 Natural gas network – asset information

In 2007-08, the NSW natural gas network delivered approximately 105 PJ or about 2.82E+09 standard cubic metres of gas through 26,500 km of pipes.

Table 1.1: Natural gas networks in NSW

Reporting period

Total network length in NSW

in km Network growth

in NSW in km

Gas entering the network

in PJ Gas delivered

in PJ Unaccounted for

gas (UAFG)

2007-08 26,500 513 108.0 105.7 2.11%

2006-07 25,987 435 106.3 103.6 2.60%

2005-06 25,552 215 104.7 102.0 2.53%

2004-05 25,337 274 104.8 102.4 2.27%

2003-04 25,063 233 105.5 103.3 2.11%

1 Operating pressure is greater than or less than 1,050 kPa.


Figure 1.1: Total network length in NSW

Total network length

26,500

25,55225,337

25,063

24,000

24,500

25,000

25,500

26,000

26,500

27,000

2003-04 2004-05 2005-06 2006-07 2007-08

Kilo

meters

25,987

Figure 1.2: Total network growth in NSW

Network growth

512.64

435.40

232.74 273.87

215.03

0.00

100.00

200.00

300.00

400.00

500.00

600.00

2003-04 2004-05 2005-06 2006-07 2007-08

Kilo

metres g

row

th



Figure 1.3: UAFG in NSW

UAFG in NSW

-2.11%

-2.27%

-2.11%

-2.60%

-3.00%

-2.50%

-2.00%

-1.50%

-1.00% 2003-04 2004-05 2005-06 2006-07 2007-08

Percen

tag

e

-2.53%

1.4 New regions

No new regions have been reticulated into in this reporting period the growth is within the networks

areas.

1.5 Conclusion

Over the reporting period the total of the gas networks in NSW has increased by approximately 512 km.

The overall length of the NSW networks is currently 26,500 km. In 2003-04 the reported length of the NSW networks was 25,063 so in the last four years the network has increased 1,437 km (approximately a 5.7 per cent growth).

The last two reporting periods have had the largest increases in the networks growth.

The UAFG has been reported at -2.11 per cent. This is a good result.

This reporting period has also had the largest amount of gas delivered from the networks to consumers

in NSW.



2. Network integrity and safety information

2.1 Annual reporting requirements

This chapter deals with product loss through escapes and from third party activity. It indicates how secure the assets are and how activity around the assets affect the performance. It also deals with the

preventive measures with leak surveys. This is check areas and rectifying escapes from the survey performed:

Number of gas leaks reported to network operator by third parties, by pressure class.

Kilometres of pipe subjected to leak surveys.

Number of leaks found during leak surveys.

Number of recorded mechanical damage incidents to gas networks, by type and source

– by pressure class and location.

Number of emergency exercises or simulations conducted.

Number of calls to a ‘One-Call’ system received about work near the networks.

2.2 Key performance indicators

The key performance indicators adopted by the Department for network integrity and safety are:

gas leaks per 10 km of pipe reported by third parties

gas leaks per 1,000 customers as reported by third parties

leak surveys as a Percentage of total pipe length

leaks found per 10 km of pipe surveyed

mechanical damage incidents per 10 km of pipe

mechanical damage incidents per 1,000 consumers

emergency exercise numbers.

Table 2.1: Network integrity and safety for NSW

Reporting period

Third party reported leaks per

10 km

Third party reported leaks per

1,000 consumers

Percentage of network

leak surveyed

Leaks found from

survey per 10 km

Mechanical damage

per 10 km

Mechanical damage per 1,000

consumers Emergency exercises

2007-08 4.77 11.94 19.88% 7.35 0.67 1.69 19

2006-07 6.11 15.38 22.10% 16.01 0.95 2.39 14

2005-06 4.86 12.31 31.95% 8.49 0.92 2.34 12

2004-05 4.04 10.49 24.92% 3.75 0.99 2.58 8

2003-04 4.48 11.85 37.59% 5.30 1.15 3.04 8



Figure 2.1: Third party reported escapes in NSW

Figure 2.2: Mechanical damage in NSW

Third party reported escapes

4.77

6.114.86

4.04

4.48

11.9415.38 12.31

10.49

11.85

0.00

4.00

8.00

12.00

16.00

20.00

2003-04 2004-05 2005-06 2006-07 2007-08

Nu

mb

er

Leaks per 10 km reported Leaks per 1,000 cosumers reported

Mechanical damage

1.69

0.670.95

0.92

0.99

1.15

3.042.58

2.34

2.39

0.00

1.00

2.00

3.00

4.00

2003-04 2004-05 2005-06 2006-07 2007-08

Nu

mb

er

Mechanical damage per 10 km Mechanical damage per 1,000 consumers



Figure 2.3: Leakage surveys

Leakage survey

31.95%

22.10%19.88%

24.92%

37.59% 16.01

5.30 3.75

8.49

7.35

0.00%

1

2

3

Percen

tag

e surveyed

0.00%

0.00%

0.00%

40.00%

2003-04 2004-05 2005-06 2006-07 2007-08 0.00

5.00

10.00

15.00

20.00

Leaks fo

un

d p

er 10 km

Percentage of network surveyed Leaks found per 10 km surveyed

2.3 Natural gas networks performance

The Networks KPIs during the reporting period have all decreased compared to last years reporting period.

Reported escapes by third parties have increased and will need to be monitored with the number

increasing within this period.

The amount of network surveyed was about 20 per cent for the reporting period 2007-08 however the figures for the past five years of surveys indicate that the networks have now, on average, been

surveyed at least once.

Mechanical damage did fall to the lowest figure reported.

2.4 Conclusion

Reported third party escapes have decreased and mechanical damage has also reduced in numbers. The reductions in third party impact on the assets would also help in reducing the UAFG.



3 Network reliability and consumer related matters

3.1 Annual reporting requirements This is the ability to rectify situations that have occurred and the amount of time to have the events under control or rectified and the ability to respond to events within a specific time period. The consumer related numbers are used to assist in the KPI analysis as a relation to how many consumers are affected by the events.

Number of consumers connected to the network: Total number.

Number of new consumers connected to the network: Total number.

Loss of supply (duration): Total unplanned consumer hours lost (five or more customers).

Loss of supply (number): Total unplanned numbers of loss of supply instances (five or more customers).

Poor supply pressure: Total number of instances.

Odorant levels not to specification: Total number of instances.

Number of incidents/emergencies responded to.

Incidents/emergencies response not within 60 minutes of notification: Total number.

3.2 Key performance indicators The key performance indicators adopted by the Department for network reliability and safety are:

loss of Supply (Duration): Total unplanned consumer hours lost (five or more customers) per 1,000 customers

percentage of calls responded to within 60 minutes.

Table 3.1: Network consumer numbers

Reporting period

Consumers on the network Consumer growth

New customers connected to the network

2007-08 1,058,851 26,319 25,895

2006-07 1,032,532 23,031 26,928

2005-06 1,009,501 32,998 32,666

2004-05 976,503 27,978 37,775

2003-04 948,525 70,017 38,690

Consumers numbers connected to gas networks is the sum of all consumers active at the time of this report being compiled. This means that this information is a ‘snap shot’ in time.



New Customers connected to the networks relates to new installations. These figures may not necessarily be included in the consumer numbers as at the time of calculation supply to new consumers may not have been active. This is one reason why the consumer number growth does not equal the new customers connected. Another reason for the difference in numbers is the disconnection of consumers from the network.

Table 3.2: Network reliability and safety information

Reporting period

Loss of supply unplanned

consumer hours lost per 1,000 consumers

Loss of supply unplanned supply loss incidents

per 1,000 km

Number of out |of spec gas or odorant levels

out of spec

Incidents/ emergencies

number per 1,000

consumers

Incidents/ emergencies responded

to within 60 min as a percentage

2007-08 15.93 2.04 68 2.46 97.96%

2006-07 33.74 3.39 347 2.49 97.48%

2005-06 25.80 3.33 72 2.34 97.77%

2004-05 77.52 4.62 62 1.90 98.11%

2003-04 19.52 3.11 87 2.80 98.12%

Figure 3.1: Natural gas consumers in NSW

Natural gas consumers in NSW

1,058,8511,032,532

1,009,501976,503

948,525

850,000

900,000

950,000

1

Nu

mb

er con

sum

ers

,000,000

1,050,000

1,100,000

2003-04 2004-05 2005-06 2006-07 2007-08



Figure 3.2: New customers connected in NSW

Figure 3.3: Loss of supply

New customers connected

25,895

26,928

32,666

37,77538,690

20,000

25,000

30,000

35,000

40,000

2003-04 2004-05 2005-06 2006-07 2007-08

Year

Nu

mb

er ne

w c

on

sum

ers

Loss of supply

15.93

25.50

33.74

4.62

3.33

3.11

0.00

20.00

40.00

60.00

80.00

100.00

2003-04 2004-05 2005-06 2006-07 2007-08

Co

ns

um

er ho

urs p

er 1,000 cus

tom

ers

0.00

1.00

2.00

3.00

4.00

5.00

Un

pla

nn

ed

loss

es per 1,00

0 km

Number consumer hours off supply per 1,000 consumers

Number unplanned losses of supply per 1,000 km

19.52

2.04

3.39

77.52



Figure 3.4: Incidents in NSW

Figure 3.5: Incidents/emergencies responded to in 60 minutes

Incidents

1.90

2.46

2.54

2.31

2.80

1.00

1.50

2.00

2.50

3.00

2003-04 2004-05 2005-06 2006-07 2007-08 Year

Incid

en

ts per 10

00 custo

mers

Percentage incidents/emergencies responded to in 60 minutes

97.96%

97.48%

97.77%98.11%

98.12%

96.00%

97.00%

98.00%

99.00%

100.00%

2003-04 2004-05 2005-06 2006-07 2007-08

Year

Percen

tag

e

3.1 Conclusion

The number of consumers connected to gas networks has increased to over 1,050,000. The connection

of new customers has declined in the past two reporting periods even though the network has increased in size. Comparing the number of new customers connected in 2003-04 to the 2007-08 period, the reduction in customers connected is just over 33 per cent. The 2007-08 period has the lowest number of

new customers connected but the 2003-04 was not the highest reported connection period.

The loss of supply figures was reduced this would also appear to be a good result from the lower figure from mechanical damage and less third part contact.

The number of incidents/emergencies that were reported was close to the last reporting period. The percentage of calls attended in the 60 minutes time period is 97.96 per cent.



4 High pressure pipeline activities (unlicensed pipelines)

4.1 General

Jemena (Sydney) Jemena (Coastal), ActewAGL and Albury Gas operate high pressure pipelines

(>1,050 kPa) as part of their network activities. Network operators are required to review matters such as pressure, location, land use, security and risk assessments on a periodic basis as defined under Australian Standard AS 2885: Pipelines – Gas and liquid petroleum.

The Department’s annual reporting requirements requested the following information:

Accidents, escapes and ignitions.

Integrity assessment/monitoring.

Operational performance.

With the new Sydney Primary Loop being commissioned in this reporting period, NSW now has approximately 174 km of mains operating at pressures above 1,050 kPa as part of the networks .

These distribution mains contain a larger amount of energy and are important feeders to the distribution network system. This is why a more in-depth review of the operation and safety aspects to the public, personnel and environment is required.

4.2 Accidents, escapes and ignitions

The following issues are covered within this section:

Incidents.

Loss of Containment (LOC).

Ignitions.

Injuries involving the pipeline.

Damage involving the pipeline.

Table 4.1: Number of accidents, escapes and ignitions

Reporting period Incidents

Loss of containment

(LOC) Ignitions Injuries Damage

2007-08 0 1 0 0 0

2006-07 0 0 0 0 0

2005-06 0 0 0 0 0




4.3 Integrity assessment/monitoring

.The following issues are covered within this section:

Integrity assessment.

Pipeline patrols.

Supervised activity around the pipeline.

Field inspections.

Cathodic protection (CP).

Coating defects.

Table 4.2: Integrity assessment/monitoring

Reporting period

Supervised activities per km

Percentage of activities that

contacted operator

Defects requiring repair

per 1,000 km

Percentage of CP units operating correctly

Percentage of pipeline covered

by cathodic protection

method

2007-08 29.10 72.27% 1.00 100% 100%

2006-07 26.81 69.53% 15.94 100% 100%

2005-06 25.67 60.49% 17.94 100% 100%

4.4 Operational performance

The following issues are covered within this section:

Loss of operation.

Details of any unplanned or abnormal incidents that could have a long term effect on the safety of the pipeline.

Table 4.3: Operational performance

Reporting period Hours pipeline not operational Number of unplanned or

abnormal incidents per km

2007-08 0 0

2006-07 0 0

2005-06 0 0


Appendix A – Natural gas industry in NSW

The gas distribution industry in NSW is made up of authorised reticulators of natural gas and to a considerably lesser extent, licensed distributors of LPG. The NSW gas transmission system and NSW

gas retailers are not addressed in this report.

Natural gas networks

The natural gas supply chain, shown Figure A.1, consists of four main discrete entities:

Gas production (covered in NSW by Department of Primary Industries).

Transmission system (covered in the Licensed Pipelines Report).

Distribution networks (covered in this Report).

Retailers (covered by IPART).

Figure A.1: The NSW natural gas supply chain

Gas installations/ appliances

Coal seam methane

state border

New South Wales

Reticulation (distribution

pipelines) covered in this

Victoria,South Australia

and Queensland

Transmission pipeline

(covered in the Licenced

Pipelines Report)

Raw gas

Pipeline quality gas

Gas from Wells in South Australia, Victoria

and Queensland Consumers

Gas treatment processing plants at

Longford – Victora,

Moomba – South Australia

NSW is unique among the mainland States of Australia as it has no commercially viable reserves of

natural gas within its borders or in adjacent waters at this time. Most of the natural gas used in NSW is presently produced in the Cooper Basin (South Australia) and piped through a transmission pipeline system, most of which is owned and operated by the APA (Group).

A-1 | NSW Department of Water and Energy, June 2009


A second transmission pipeline, owned and operated by Jemena, links NSW with Victoria from Longford

in Victoria to Sydney along the eastern seaboard. There is a third, but small, interlink between NSW and Victoria at Albury and gas is also supplied from Queensland into Tweed Heads. Some gas is sourced within NSW from coal seam deposits.

The NSW retail gas market has been progressively opened up to competition since 1996 giving consumers the choice of gas supplier. The market has been fully contestable since January 2002.

The scope of this report is limited to the distribution networks. The natural gas distribution network in

NSW is the conduit for the reticulation of natural gas and supply to consumers in the State. The greater NSW network is divided into smaller distribution networks and operated by authorised reticulators.

There were six authorised natural gas network operators in NSW during the reporting period. The

locations of these networks are illustrated in Figure A.2. The networks are briefly described below.

Figure A.2: Location of Natural gas networks in NSW



Jemena Gas Networks (NSW) Ltd

The principal reticulator of natural gas in NSW is Jemena Gas Networks (operated for and on behalf of

Jemena Gas Networks by Jemena Asset Management). The Jemena Gas Network in NSW is reported in five large natural gas distribution networks:

Jemena (Sydney North)

Jemena (Sydney South)

Jemena (Sydney West)

Jemena (Coastal)

Jemena (Country)

Jemena (Sydney) Network broadly services the area bounded by Palm Beach and Hornsby to the North

of Sydney, Sutherland Shire and Bankstown to the South and West to Lithgow. This network is large and complex. The Jemena (Coastal) Network broadly services the Hunter and Newcastle, the Central Coast and Illawarra Regions and the Jemena (Country) Network covers a large area in central NSW and

services the Southern Highlands, Central Tablelands, Central West, Riverina and South-West Slopes Regions.

Jemena Gas Networks also owns certain natural gas transmission assets in NSW.

ActewAGL Distribution (ActewAGL)

ActewAGL gas distribution network is also operated by Jemena Asset Management (on behalf of the ActewAGL Distribution Partnership). ActewAGL is a joint venture between the ActewAGL Retail Partnership and the ActewAGL Distribution Partnership. The ActewAGL Distribution Partnership

comprises Jemena ATA Pty Ltd and the ACT Government-owned ACTEW Corporation. During the reporting period, ActewAGL had two networks, one located at Queanbeyan/Bungendore and the other at Nowra.

Country Energy Gas

Country Energy Gas is a NSW State-Owned Corporation established by the Energy Services Corporation Act 1985. The Country Energy Gas network is divided into nine natural gas distribution districts comprising of Culcairn, Temora, Wagga Wagga, Walla Walla, Cooma, Tumut, Henty, Bombala

and Gundagai.

Central Ranges Pipeline Pty Ltd

The Central Ranges Pipeline has a network in Tamworth.

Albury Gas Company

The Albury Gas Company (AGC) is a wholly owned subsidiary of Envestra Limited which contracts the

operation of AGC’s assets to the APA Group. AGC supplies natural gas to the Albury area including Thurgoona, Lavington, Jindera and Howlong, and to Murray Valley towns including Moama, Tocumwal, Finley, Barooga, Mulwala and Corowa. Envestra also owns significant gas distribution networks in

Victoria, South Australia and Queensland.



APT Allgas Energy Pty Ltd

APT Allgas Energy Pty Ltd is owned by APA, Allgas has one distribution district in NSW which includes

the local government area of Tweed Heads. Allgas also has significant operations in Queensland.

Figure A.3 Proportion of pipelines owned by each natural gas network

Percentage of consumers in NSW 2007/2008



Appendix B – LPG Networks in NSW and networks performance data

In addition to the natural gas distribution network in NSW, there are also a number of LPG distribution

systems supplying gas to consumers within the State where natural gas is not available. LPG is transported to these sites by road and is therefore favoured for small stand-alone distribution systems.

LPG may be reticulated in several forms, such as TLPG, SNG, Butane or as direct LPG. The

significance of this however is that gas appliances must be calibrated and approved for use with the particular type of gas being reticulated with a network

The scope of this section of the report is limited to the LPG distribution networks only.

There were three licensed distributors of LPG in NSW who reported to the Department. The locations of these networks are illustrated in Figure B.1. The networks are briefly described below and network data provided by the operators is presented in Appendix B of this report. The figures for 2005-06 are

not accurate as not all networks provided information covering this particular reporting period.

Figure B.1: Location of LPG networks in NSW

B-1 | NSW Department of Water and Energy, June 2009


Wesfarmers Kleenheat Ltd

Kleenheat dominates the LPG sector in all three measures – pipe length, gas delivered and customer numbers. Kleenheat’s distribution networks are in Armidale and Kingscliff. Armidale is the largest LPG network in NSW.

Origin Energy LPG Ltd

Origin Energy has distribution districts in Glen Innes, Tweed Heads and Broken Hill. Origin Energy at Glen Innes is the second largest LPG network in NSW.

Elgas Reticulation Ltd

Elgas has two distribution districts located in Lismore and Thredbo.

Figure B.2: Relative sizes of LPG networks

Percentage of LPG networks in NSW 2007-08

LPG networks – Asset Information

NSW LPG distribution networks delivered 142 TJ of gas through approximately 200 km of pipes in

2007-08.

Table B.1: Asset information for LPG networks 2007-08

Network pipe length

(km) Quantity gas entering (TJ)

Quantity gas delivered (TJ)

UAFG (%)

2007-08 204 144 142 1.35%

2006-07 208 132 130 1.46%

2005-06 195 93 89 4.67%

2004-05 215 166 159 4.28%

2003-04 218 159 159 0.42%



Figure B.3: LPG network length

Figure B.4: UAFG in NSW LPG networks

Table B.2: Customer information for LPG networks

Consumers connected to the network New customers connected

to the network

2007-08 2,722 165

2006-07 2,557 1

2005-06 2,710 0

2004-05 3,067 58

2003-04 3,362 60

Total network length

204.4218.4 215.4 214.6 207.8

0

50

100

150

200

250

2003-04 2004-05 2005-06 2006-07 2007-08

Years

Len

gth

Km

UAFG

-0.42%

-1.46% -1.35%

-4.28%

-4.67%-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00% 2003-04 2004-05 2005-06 2006-07 2007-08

Year



Figure B.5: LPG networks customer numbers

Table B.3: Network integrity and safety information – LPG networks 2007-08

Leaks per 10 km

reported by third parties

Leaks per 1,000

customers reported by third parties

Leak survey per cent of

network surveyed

Leaks found per 10 km

of pipe surveyed

Mechanical damage

incidents per 10 km by

third party

Emergency exercises conducted

2007-08 1.61 12.12 17.12% 2.29 0.15 6

2006-07 2.07 16.82 12.46% 13.51 0.05 1

2005-06 0.23 1.85 16.86% 4.27 0.15 2

2004-05 2.69 18.91 10.54% 2.20 0.28 4

2003-04 1.24 8.03 14.61% 2.19 0.18 3

Number of consumers

2,722

3,3623,067 2,710 2,557

0

1,000

2,000

3,000

4,000

2003-04 2004-05 2005-06 2006-07 2007-08

Years

Co

ns

um

ers n

um

bers



Figure B.6: Leaks reported by third party

Reported leaks

3.00 18.91

16.82

2.25 Leaks

1.6112.12

1.50

p

8.03 1.24

0.75

0.230.00

2003-04 2004-05 2005-06 2006-07 2007-08

er 10 km

0.00

5.00

10.00

15.00

20.00 L

eaks per 1,000

con

su

mers

Years

Leaks per 10 km reported Leaks per 1,000 customers reported

2.07

2.69

1.85

Conclusion

Due to the smaller size of the LPG networks the figures can very as any incident can affect the KPIs greatly, hence the need to record the LPG network figures as a separate item.

Over the five reporting periods LPG networks have decreased in size, however this reporting period indicates the first rise in customer numbers. The figures do vary from reporting periods as an incident can have a big effect on these figures.


nsw gas networks

Documents