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Gas Transmission Asset Management Plan 2013 – 2023

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Gas Transmission Asset Management Plan 2013 – 2023 Gas Transmission Asset Management Plan 2013 – 2023 Table of Contents (Note that each section is individually numbered) SECTION 1 Executive Summary SECTION 2 2. BACKGROUND AND OBJECTIVES ......................................................... 5 2.1 Context for Asset Management at Vector .................................................. 5 2.2 Planning Period and Approval ................................................................. 8 2.3 Purpose of the Plan ............................................................................... 9 2.4 Changing External Outlook ................................................................... 15 2.5 Asset Management in the Wider Vector Context – Internal Stakeholders ..... 16 2.6 Asset Management in the Wider Vector Context – External Stakeholders..... 19 2.7 Asset Management Structure and Responsibilities .................................... 23 2.8 AMP Approval Process ......................................................................... 28 2.9 Asset Management Decisions and Project Expenditure Approval ................. 30 2.10 Performance Reporting ........................................................................ 31 2.11 Asset Management Processes ............................................................... 31 2.12 Works Coordination ............................................................................. 33 2.13 Other Asset Management Documents and Policies ................................... 34 2.14 Review of Vector’s Asset Management Practice ........................................ 36 2.15 Cross Reference to the Information Disclosure Requirements .................... 40 SECTION 3 3. ASSETS COVERED ............................................................................... 5 3.1 General Description of Assets ................................................................. 5 3.2 Pipelines .............................................................................................. 7 3.3 Compressors ........................................................................................ 9 3.4 Stations ............................................................................................ 10 3.5 Critical Spares and Equipment .............................................................. 36 Vector Gas Transmission Table of Contents, Page 1 of 4 Asset Management Plan 2013-2023 3.6 Schematic Diagrams of Vector Gas Transmission Assets ........................... 37 3.7 List of Pipelines .................................................................................. 44 3.8 List of Special Crossings ...................................................................... 53 3.9 List of Stations ................................................................................... 59 3.10 List of Compressor Units ...................................................................... 67 3.11 Number and Ages of Asset Classes ........................................................ 67 SECTION 4 4. SERVICE LEVELS ................................................................................. 4 4.1 Consumer Oriented Performance Indicators .............................................. 4 4.2 Asset Performance Indicators ................................................................. 8 SECTION 5 5. SYSTEM DEVELOPMENT PLANNING ..................................................... 6 5.1 System Development Processes .............................................................. 6 5.2 Gas Transmission System Security Standard............................................. 9 5.3 Establishing the Physical Capacity of a Transmission Pipeline .................... 10 5.4 Demand Forecasting and Modelling ....................................................... 18 5.5 Project Planning and Prioritisation ......................................................... 22 5.6 North System ..................................................................................... 26 5.7 Central (North) System ....................................................................... 34 5.8 Central (South) System ....................................................................... 40 5.9 Bay of Plenty System .......................................................................... 43 5.10 South System .................................................................................... 50 5.11 Other Vector Assets ............................................................................ 63 5.12 Third Party Pipeline Relocation .............................................................. 65 5.13 Potential Large New Consumer Connections ............................................ 67 5.14 Summary of System Development CAPEX Expenditure Forecast ................ 68 5.15 Gas Transmission: System Security Standard ......................................... 70 SECTION 6 6. ASSET MAINTENANCE, RENEWAL AND REPLACEMENT ........................ 6 6.1 Overview ............................................................................................. 6 Vector Gas Transmission Table of Contents, Page 2 of 4 Asset Management Plan 2013-2023 6.2 Maintenance Planning, Processes, Policies and Criteria ............................... 9 6.3 Pipelines ............................................................................................ 12 6.4 Compressors ...................................................................................... 22 6.5 Stations ............................................................................................ 31 6.6 Critical Spares and Equipment .............................................................. 52 6.7 Plant and Equipment ........................................................................... 53 6.8 Engineering Studies ............................................................................ 54 6.9 Maintenance & Inspection and Renewal & Replacement Expenditure Forecasts ........................................................................................... 56 SECTION 7 7. SYSTEMS AND DATA ........................................................................... 4 7.1 Asset Information Background ................................................................ 4 7.2 Asset Information Systems .................................................................... 5 7.3 Asset Management Reporting ............................................................... 11 7.4 Improvement Initiatives ...................................................................... 11 7.5 Asset Data Quality Improvements ......................................................... 13 7.6 Expenditure Forecast ........................................................................... 14 SECTION 8 8. RISK MANAGEMENT ............................................................................ 4 8.1 Risk Management Policy ........................................................................ 4 8.2 Risk Accountability and Authority ............................................................ 4 8.3 Risk Management Process ...................................................................... 7 8.4 Gas Transmission Asset Risks ............................................................... 10 8.5 Catastrophic Consequence Risks ........................................................... 11 8.6 Risk Mitigation .................................................................................... 14 8.7 Health and Safety Management ............................................................ 18 8.8 Environmental Management ................................................................. 20 SECTION 9 9. SUMMARY OF EXPENDITURE FORECAST .............................................. 4 9.1 Introduction ......................................................................................... 4 Vector Gas Transmission Table of Contents, Page 3 of 4 Asset Management Plan 2013-2023 9.2 Capital Expenditure ............................................................................... 4 9.3 Operational Expenditure ........................................................................ 8 9.4 Assumptions for Preparing Expenditure Forecasts .................................... 12 9.5 Prioritisation of Expenditure ................................................................. 14 9.6 Price Inflation Adjustment .................................................................... 15 APPENDICES Vector Gas Transmission Table of Contents, Page 4 of 4 Asset Management Plan 2013-2023 Gas Transmission Asset Management Plan 2013 – 2023 Executive Summary Section 1 Table of Contents 1. EXECUTIVE SUMMARY ........................................................................... 4 1.1 Introduction .......................................................................................... 4 1.2 Business Operating Environment ........................................................... 5 1.2.1 Qualification ............................................................................... 5 1.2.2 Economic Factors ........................................................................ 6 1.2.3 Regulatory Factors ...................................................................... 6 1.2.4 Technical Compliance .................................................................. 7 1.2.5 Health and Safety ....................................................................... 7 1.2.6 Environmental ............................................................................ 8 1.2.7 External Review of Asset
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