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Gas Transmission GAS TRANSMISSION ASSET MANAGEMENT PLAN – 2016 Disclaimer: The information in this document has been prepared in good faith and represents First Gas’ intentions and opinions at the date of issue. However, First Gas operates in a dynamic environment (for example, the changing requirements of customers, deteriorating asset condition and the impact of severe weather events) and plans are constantly evolving to reflect the most current information and circumstances. Consequently, First Gas does not give any express or implied assurance about the accuracy of the information or whether First Gas will fully implement the plan or undertake the work mentioned in the document. None of First Gas Limited, its directors, officers, shareholders or representatives accepts any liability whatsoever by reason of, or in connection with, any information in this document or any actual or purported reliance on it by any person. First Gas may change any information in this document at any time. Gas Transmission Asset Management Plan 2016 Dear Stakeholders Welcome to the First Gas Limited gas transmission Asset Management Plan (AMP) for 2016. This is our first formal asset management disclosure since we took control of the gas transmission assets of Vector Limited and Maui Development Limited earlier this year. We have also published an AMP for our gas distribution network. We have been in a transition period as we transfer operational control of the assets, appoint a management team and put supporting functions in place. This process is well underway, with our team progressing a number of important new initiatives. Notwithstanding the effort required for this transition, we believe it is important to produce AMPs that clearly communicate the progress we have made to date and our future plans for managing the network. In doing so, we have sought to reflect recent discussions with the industry and our regulators on the information that they would like to see in our AMPs and how our disclosures can most effectively convey information to our stakeholders. While our AMPs are still a ‘work-in-progress’ and further improvements will be made over time, we have tried to ensure they are accessible and easy for a wider range of stakeholders to use. We want to produce AMPs that are a valuable resource for our customers, staff, and regulators, and that they clearly set out the issues facing our networks and how we plan to respond. We welcome your feedback on how well our AMPs achieve these goals. This AMP presents our plans for managing and investing in critical high pressure gas transmission assets over the next ten years. It focuses on a number of key priorities aimed at ensuring that we provide a secure, reliable, and efficient supply for our customers. In achieving these priorities, we will not compromise on our efforts to ensure the safety of our staff and the general public. Safety is always our foremost priority. In addition to ensuring safety, significant themes and initiatives in this AMP centre on providing the level of supply security that our customers expect through active risk identification, monitoring and management. In some areas, such as managing geotechnical risks, this requires us to carry out more work than has historically occurred on our networks. Planned investments, such as our White Cliffs realignment programme, also reflect our assessment of the need to respond to identified security risks in a timely way. I trust you will find our AMP to be an informative and valuable resource. We welcome your feedback on the content of this AMP and look forward to continuing to work with you to build a greater understanding of how our assets are managed for the long-term. Please forward your comments to me ([email protected]). Paul Goodeve Chief Executive I Gas Transmission Asset Management Plan 2016 Page intentionally left blank. II Gas Transmission Asset Management Plan 2016 Table of Contents 1. EXECUTIVE SUMMARY ............................................................................................................ 1 2. INTRODUCTION ........................................................................................................................ 8 2.1. Introducing our 2016 AMP .......................................................................................................... 8 2.2. Overview of First Gas ............................................................................................................... 10 2.3. Our Stakeholders ...................................................................................................................... 14 3. NETWORK OVERVIEW ........................................................................................................... 18 3.1. Our Gas Transmission Network ................................................................................................ 18 3.2. Key Statistics ............................................................................................................................ 19 3.3. Pipelines ................................................................................................................................... 20 3.4. Main Line Valves....................................................................................................................... 23 3.5. Compressor Stations ................................................................................................................ 24 3.6. Station Components ................................................................................................................. 25 4. ASSET MANAGEMENT APPROACH ..................................................................................... 35 4.1. Asset Management Framework ................................................................................................ 35 4.2. Asset Management Governance .............................................................................................. 39 4.3. Asset Risk Management ........................................................................................................... 44 4.4. Performance Measures ............................................................................................................ 51 4.5. Asset Management Maturity Assessment Tool ........................................................................ 55 5. SYSTEM DEVELOPMENT ....................................................................................................... 57 5.1. System Development ................................................................................................................ 57 5.2. Development Planning .............................................................................................................. 59 5.3. Capacity Modelling.................................................................................................................... 61 5.4. Demand Forecasting and Modelling ......................................................................................... 63 5.5. Development Plans ................................................................................................................... 67 5.6. Potential Large new connections .............................................................................................. 72 5.7. System Development Forecast ................................................................................................. 73 6. LIFECYCLE MANAGEMENT ................................................................................................... 74 6.1. Asset Lifecycle Management .................................................................................................... 74 6.2. Asset Replacement and Renewal............................................................................................. 76 6.3. Relocations ............................................................................................................................... 81 6.4. Maintenance ............................................................................................................................. 82 6.5. Other Network Opex ................................................................................................................. 89 6.6. Overview of Asset Fleets .......................................................................................................... 93 6.7. Pipeline ..................................................................................................................................... 94 6.8. Main Line Valves (MLVs) ........................................................................................................ 101 6.9. Compressor Stations .............................................................................................................. 102 6.10. Station Components ............................................................................................................... 107 7. ASSET MANAGEMENT SUPPORT ...................................................................................... 123 7.1. Non-Network Assets ............................................................................................................... 123 7.2. Business Support .................................................................................................................... 130 III Gas Transmission Asset Management Plan 2016 8. EXPENDITURE OVERVIEW .................................................................................................
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