ISSUE 166 | APRIL 2016 The final stages: VNIE Loopings 6–9 underway
The state MPC’s of the gas award-winning Queensland industry 36 safety app 68 region review 82
FP 1 Page One Mitchell Water
MITCHELL | EPC - Construction The client accepts full responsibility for final approval, so please ensure that this proof is checked thoroughly before sign off. The client and printer accept responsibility for die line measurements, barcode placement and accuracy, colour selection and number of plates, best before areas and print free areas. The client must ensure that all content adheres to any applicable laws, including trademarks and food standards. This in-house generated proof is not an accurate representation of final colours, it is recommended that the client send Response a printer’s proof to check for colour accuracy. Response is only responsible for the finished art as approved on this proof. All images, concepts and artwork in this document are work product and property of response pty ltd. © Copyright response pty ltd 2015. All rights reserved. DATE 12/11/15 JOB No MIT13437 PROOF No 1 SOFTWARE Indesign CC DIMENSIONS 297mm d X 210mm w SCALE 100% COLOURS ■ Cyan ■ Magenta ■ Yellow ■ Black Full page to appear in Gas Today Summer Issue 2016 CONTENTS CONTENTS
EXECUTIVE REPORTS TRAINING COVER STORY PIPELINE CONSTRUCTION WORKERS OF AUSTRALIA 6 President’s Message 50 Standardising pipeliner training 79 Connecting port to pipeline 94 Pipeline construction workers of Australia 8 Chief Executive’s Report TECHNICAL REGION REVIEW: QUEENSLAND QUIZZES AND PUZZLES APGA NEWS AND EVENTS 54 NFPCA recognised with innovation award 82 The pipeline state: Queensland region review 96 The Australian Pipeliner Quiz 10 Members and memos 56 Gas energy recovery: turbo expanders and maximising 12 WA off to a swinging start pipeline efficiency PROJECTS APGA MEMBERSHIP 14 A lesson in ethics for Brisbane 85 The final stages: VNIE Loopings 6–9 98 APGA Membership List 16 International insight for Melbourne members INTERVIEW 86 New development heats up in Victoria’s west 100 APGA Membership Application Form 16 Raising the bar at the New Zealand dinner 60 A new age for contractors 102 APGA New Membership Approvals 18 Benefits of gas outlined in Adelaide 63 Pipeline personality: George Wettenhall NEWS IN BRIEF 88 The latest industry news WHAT’S ON YOUNG PIPELINERS FORUM COMPANY NEWS 90 World wrap 102 APGA Meetings 2016 20 Young pipeliner profile 64 NDT keeping it smooth 102 Exhibitions and Conferences 22 Queenslanders off to a strong start 65 Spacing the NGP evenly MAGAZINE BRIEFS 103 Advertisers Index 24 Brewing for a big 2016 66 Michell returns control to the user 92 12 tonnes of relining fun 92 Reliability engineering: a target-driven approach to THE LAST WORD EPCRC SAFETY integrity management 104 What I know about pipelines: Patricia Friend-Pereira 26 Innovative future: long-term support for the broader 67 Ushering in 2016 safely 92 Heading north Australian pipeline industry 68 New tech offers a clearer picture of FIFO wellbeing 71 Safety in numbers INDUSTRY NEWS 28 Choose your path: the future for Australia’s INTEGRITY AND MAINTENANCE gas market 72 Inspecting challenging pipelines 32 Forging our own path: the future for Australia’s gas market TRANSPORT & LOGISTICS 36 Australia’s energy: gas on the front line 76 Top level pipe stacking for the Australian industry 42 Northern gas for an eastern market 46 Eyes in the skies: the rise of drones
The Halladale well site during drilling operations in late 2014 Image courtesy of Origin Energy.
2 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au www.pipeliner.com.au THE AUSTRALIAN PIPELINER | APRIL 2016 3 REGULARS
EDITOR Sally Commins | [email protected] ASSOCIATE EDITOR Stuart Scudamore | [email protected] BREAKING DIRECTOR – PIPELINES AND GAS Lyndsie Clark | [email protected] ISSUE 166 | APRIL 2016 SALES MANAGER Th e fi nal David Marsh | [email protected] DESIGN MANAGER NEW stages: Katrina Rolfe VNIE Loopings 6 9 PUBLISHER underway Zelda Tupicoff PRINTING AND DISTRIBUTION The Dynamite Group Pty Ltd Complete Mailing Pty Ltd A.C.N. 005 716 825 (A.B.N. 28 096 872 004) The state GROUND of the gas MPC’s GPO Box 4967 Melbourne VIC 3001 industry 36 award-winning safety app 68 Queensland T: +61 3 9248 5100 | F: +61 3 9602 2708 region review 82 E: [email protected] | W: www.pipeliner.com.au FP 2 ISSN 0310-1258
Cover: Pipe stockpiled in northern Victoria for the Victorian Northern Interconnect Expansion (VNIE) Project. Read The Australian Pipeliner Image courtesy of Qube Energy. Opp Contents on your device!
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Like us on Facebook Average Net Distribution 2,433 DUNSTANS CONSTRUCTION GROUP has developed a Call 03 5722 1515 for a copy of our capability brochure The Australian Pipeliner Period ending September 2015 proven record of delivering turnkey infrastructure projects or to discuss our services with one of our managers: for our clients since 1951. We are a leading company > The Australian Pipelines and Gas providing construction, engineering, maintenance and Telecommunications Association’s vision is to lead the industrial services to the telecommunication, resources, > Maxi Horizontal Directional Drilling sustainable growth in pipeline energy and infrastructure sectors. We build, maintain > Equipment Hire The Australian Pipeliner is the official journal of the Australian infrastructure for Australasia’s energy. Pipelines and Gas Association (APGA) and is distributed to and support customer operations through safe, reliable, > Cable and Pipe Ploughing members without charge and circulated to interested The Australian Pipelines and Gas Association (APGA) innovative and cost effective services. > Gathering Systems Great organisations throughout Australia and overseas. It is also is a non-profit organisation formed to represent the interests of its members involved Southern available on subscription. The publishers welcome editorial in: the ownership, operation, maintenance, design, engineering, supply and And we always get the job done. > Small Diameter Pipelines Press contributions from interested parties. However, neither the construction of pipelines, platforms and all other structures used in or in connection publishers nor the APGA accept responsibility for the content of these contributions with the drilling for, extraction and transmission of hydrocarbons, solids, slurries and the views contained therein are not necessarily the views of the publishers or the and similar substances both onshore and offshore. As a single voice representing the APGA. Neither the publishers nor the APGA accept responsibility for any claims collective interests of its members, the APGA is dedicated to encouraging the made by advertisers. All communications should be directed to the publishers. extension and development of the industry.
4 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au www.dunstans.com.au
155 Dunstans full page Pipeliner advertAW.indd 1 7/08/13 12:26 PM EXECUTIVE REPORTS
President’s Message
t the recent Australian Domestic Gas Outlook 2016 conference, keynote speaker and Australian Competition and Consumer Commission Chairman Rod Sims Aflagged some early thinking from the commission’s East Coast Gas Inquiry. While Mr Sims did address the global and domestic uncertainty contributing to tighter gas supply in eastern Australia, he indicated that he saw a greater role for regulation in the pipeline sector. The type of regulation Mr Sims raised – the setting of pipeline prices and the effective involvement of a regulator in private investment decisions – could introduce significant costs and risks into the gas transportation market. Heavy-handed regulation will likely discourage efficient investment in pipeline infrastructure, limiting opportunities to connect additional gas supplies to market and ultimately reducing competition and choice for gas users. Shaun Reardon, President. New pipeline projects like Jemena’s $800 million Northern Gas Pipeline, which will deliver a new source of gas to the east coast from 2018, just wouldn’t be feasible if transportation prices were regulated. The best way to encourage a competitive and robust gas market, and ensure customers get the gas they need where they need it, is by removing restrictions on gas field development. The real issue underlying dysfunction in our gas market is insufficient supply. The pipeline industry will continue to respond to upstream development by building new routes to market, and increasing capacity on existing assets to meet customers’ needs. APGA Board The gas industry plans to advocate more actively on the fundamental role of gas in President Australia’s energy mix, and the Australian Pipelines and Gas Association will be part of Shaun Reardon FP 3 this increased advocacy. Jemena Limited Our abundant natural gas resources are a competitive advantage crucial to the ongoing Vice President growth of our economy and our enviable standard of living. Unfortunately, the benefits Dave Maloney of gas in our homes and for industry have been overlooked by the focus on renewables CNC Project Management and community concerns about fracking. Treasurer For some time now, energy policy has tended to favour renewables (via subsidies) or Tony O’Sullivan Qube coal generation (in the absence of a carbon price), while overlooking the very real Murphy Pipe and Civil Constructions advantages of gas. Gas is an environmentally sound choice, capable of delivering reliable Immediate Past President and well-priced peak and baseload energy to homes and businesses. Mark Dayman The benefits of gas, given the abundance of our domestic reserves, cannot be Fyfe Pty Ltd overstated as we strive to meet ambitious global emissions reductions targets and support Peter Cox the competitiveness of domestic industries, all while keeping the lights on. Our WorleyParsons Services policymakers have also been distracted by the politicisation of onshore gas development, Jim Frith despite an overwhelming wealth of independent, scientifically rigorous evidence McConnell Dowell concluding any potential risks from onshore gas activity can be properly managed. Kevin Lester Queensland, with its more mature onshore sector, demonstrates that gas development APA Group can coexist with agricultural and other land uses. Donna McDowall The Queensland government should also be commended for its commitment to the Quanta Services Australia new Bundaberg Port Gas Pipeline. Bringing gas to the Wide Bay region will support local John Stuart-Robertson businesses, including a new $70 million plasterboard manufacturing plant, as well as Lucas Engineering & Construction establish the area as a new regional economic hub. Mark Twycross Twycross and Partners Given the ACCC’s review of the east coast gas market has yet to conclude, the Bundaberg Port Gas Pipeline and the Northern Gas Pipeline are both timely reminders that our sector has a healthy appetite to invest in new infrastructure to meet the needs of Australia’s gas customers. To best support gas users, policymakers should focus their attention on getting gas to market as quickly, efficiently and competitively as possible, without resorting to unnecessary regulation that will only hinder the sustainable evolution of our industry. A strong gas industry means a strong pipeline industry.
A complete APGA membership list SHAUN REARDON PRESIDENT is printed on pages 98 and 99.
6 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au EXECUTIVE REPORTS
Chief Executive’s Report
’ve said for many years that our pipeline industry needs to have a strong Australian gas industry. I Of course, the Australian Pipelines and Gas Association (APGA) has members who transport a range of hydrocarbons and water, but natural gas is a large part of our business. Gas also plays a vital role in the economy, not just by paying tax into government coffers. It’s essential for hospitals and manufacturing industry – hospitals for high-temperature waste disposal; manufacturing for heating, power and direct inputs such as in fertilisers. And what is apparently not well understood is that natural gas provides almost the same amount of energy to households as electricity does. Cheryl Cartwright, Chief Executive. According to the Australian Bureau of Statistics’ latest figures, natural gas and LPG provided 205 PJ of energy to households in 2013-14 while electricity, including rooftop solar, provided 216 PJ. What is really interesting is that the 205PJ of gas cost households a total of $6.2 billion. The cost of the 216 PJ of electricity was substantially higher: $16.1 billion. That’s $30.2 million per petajoule for gas and $74.5 million per petajoule of electricity. Natural gas is less expensive for households. Gas is also better for the environment. Gas used in the home has around one quarter the emissions of electricity. This is because 60 per cent of electricity from the grid is ABN: 29 098 754 324 provided by burning coal. APGA Secretariat Registered Office: APGA is committed to getting this message out to the community, policy makers and 7 National Circuit, Barton ACT 2600 FP 4 politicians. And we are pleased that the upstream industry association, APPEA, is also (PO Box 5416, Kingston ACT 2604) keen to highlight the benefits of gas. Tel: +61 2 6273 0577 In fact the Australian Petroleum Production and Exploration Association (APPEA), the Fax: +61 2 6273 0588 Energy Networks Association (ENA) and APGA have jointly provided an information Email: [email protected] brochure A Bright Future for Gas, which highlights some of the benefits of gas for Website: www.apga.org.au consumers and the broader economy. Opp M&M There’s a copy on the APGA website: www.apga.org.au So, as well as being better for the environment and less expensive for households, in Chief Executive Cheryl Cartwright many cases there is no alternative to gas – such as high-temperature waste disposal and Business Manager manufacturing inputs. Steve Dobbie If we can convince policy makers of this value, there will be a healthy future for National Policy Manager natural gas in Australia, and there will be a healthy future for the pipeline industry. Steve Davies East Coast Business and Finance Officer Peter Heffernan Training and Communications Manager CHERYL CARTWRIGHT CHIEF EXECUTIVE Karen Polglaze Membership Officer Gisela Thaurer Administration and Events Officer Charmaine Ogilvie
Energy Pipelines Cooperative Research Centre Chief Executive Officer Prof. Valerie Linton Business Manager Robert Newton Admin Office University of Wollongong, Faculty of Engineering, Northfields Ave, Wollongong
8 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au MEMBERS AND MEMOS MEMBERS AND MEMOS
Bilston leaves Galilee Leadership change at SEA Gas Santos revamps executive line-up SEA Gas General Manager Ashley Kellett has stepped down from his position at Paul Bilston moved on from his role as Executive Santos CEO Kevin Gallagher continues his shake-up of the company with a SEA Gas, and Ms Wendy Oldham has been appointed to take up the position. Director at Galilee Energy to take up a position as new executive team named to lead the company forward. Mr Kellett’s successor, Ms Oldham, is originally from Melbourne and has Project Manager at Jemena for the Northern Gas The executive team (Excom) will be made up of the following: spent the last 25 years working for NT Gas and APA Group. Pipeline. • Bill Ovenden – Vice President Exploration, accountable For 12 of these years she was General Manager. Galilee Energy Chairman David King stated: developing and executing a targeted exploration strategy In the role as General Manager of APA Group’s Northern Territory gas “The board would like to thank Paul for his • Brett Woods – Vice President Development, accountable for pipeline operations, Ms Oldham has been responsible for the safe efforts and support of the company and, while delivering projects, sustaining capital work programs and non- management and integrity of over 2,000 km of gas pipeline infrastructure, I am disappointed to lose his skills and operated assets leading a team of approximately 50 people spread out across the Northern experience on the board, I would like to wish • Vince Santostefano – Chief Operations Officer, accountable for Territory. him well in what is a very exciting and profit and loss of all Santos-operated producing assets “Wendy has a strong focus on workplace and operation safety and with challenging new role.” • John Anderson – Executive Vice President Commercial and her business and management skills she is well placed to continue to build Business Development relationships and to provide leadership for SEA Gas through the next phase • Andrew Seaton – Chief Financial Officer of its development. She will be well supported by the SEA Gas team we • Angus Jaffray – Executive Vice President Strategy and Corporate have established over the last 13 years,” said Mr Kellett. Services. Mr Kellett stepped down on 22 February as General Manager of SEA Gas “The appointment of the Excom is a key step in establishing a new after 13 years in the role. operating model for Santos that is focused on both lifting productivity “I don’t intend to disappear from the industry if I can still be of use, but and driving long-term value for shareholders in a low oil price at 65 it seemed appropriate to start to wind down,” Mr Kellett said. environment,” said Mr Gallagher. Ashley Kellett. “The new model involves a move away from geographic-based business units to an Paul Bilston speaking at an APGA Dinner in Melbourne asset-focused model Pipeliner news in 2014. with strong technical After three years, former editor of The Australian Pipeliner, capabilities in our Lyndsie Clark will be returning to the position of editor of the primary business of publication. Decmil adds EPC capability exploration, Lyndsie has also been announced as General Manager Decmil Group has acquired the business assets of development and of Great Southern Press, taking over from Scope Australia, and with it has entered the EPC production of oil and Ms Zelda Tupicoff. market in Australia. natural gas both You can congratulate Lyndsie at [email protected] Acquired for $1.68 million, Scope specialises in onshore and offshore. Departing Pipeliner editor Sally Commins has taken a the delivery of study, project management, “The transition to position at APGA lead member CNC Project Management. engineering and design consultancy services to the new model will be Sally took over as Editor of the Pipeliner in 2013 and range of industry sectors including mining, an orderly process oversaw the magazines growth and redesign to what you resources, government and construction. over the next few see today. Decmil intends to utilise Scope Australia to expand months, consistent Always a popular person in the industry, Sally has been an its business by entering the EPC market. In addition with our commitment ever-present at APGA events over the years and has Sally Commins and Lyndsie Clark. to this, Decmil will deliver turnkey process to safe sustainable developed many important relationships in and outside of the pipeline sector. infrastructure solutions to the minerals sector and development and While the team at the Pipeliner will sorely miss her, we are very excited that she is remaining in the industry that she is so EPC solutions in the utilities and government sectors. operations.” passionate about. Approximately 40 engineering professionals will Thank you for everything Sally, and all the best! You can reach Sally at [email protected] transfer with the business, which will continue to trade under the established name of Scope Santos CEO Kevin Gallagher. Australia.
Our Experience URS integrates into AECOM URS has been formally integrated into construction giant AECOM following a global acquisition at the end of 2015. As a result of this, the URS brand has disappeared in Australia and the URS team across the country has been co-located with QPH Delivers 1 Solutions AECOM. Australasia’s Most Experienced Ashley Lang, who had been leading URS Australia’s oil and gas business, will continue in that role at AECOM, with her remit Cathodic Protection Specialist now including New Zealand. Corrosion Control Sydney | Melbourne Brisbane | Perth Townsville | Auckland New Plymouth Interested in submitting an item to Members and Memos? Email The Australian Pipeliner Associate Editor Stuart Scudamore with your pipeline company news at Australia (M&MNew Zealand feature) Tel: 02 9763 5611 | Tel: 09 415 2440 | www.cceng.com.au [email protected]
10 THE AUSTRALIAN PIPELINER | FEBRUARY 2016 www.pipeliner.com.au www.pipeliner.com.au THE AUSTRALIAN PIPELINER | FEBRUARY 2016 11 APGA NEWS AND EVENTS
The winners were announced at the WA off to a dinner that evening with the team from Denso – made up of Spencer Macsween, David Towns, Jason Dagg and Graeme swinging start Sims – taking out the top honours. Once again proving to be one of the Always a hugely popular event to most popular events on the APGA circuit, start off the year, the 2016 APGA the WA Golf Day and Dinner was proudly sponsored by; AJ Lucas; Allodium; APA Western Australian Golf Day and Group; APTS; Atteris; Canusa CPS; Dinner was no exception. Century West Transport; Crest Coatings; Denso; Enerflex; Fyfe; KD1; Lean Field Development; McConnell Dowell; he city of Perth put on one of its Mitubulars; Monadelphous KT; Murphy Above: A pipeliner making sure of a strong finish finest days, and the pipeliners Pipe and Civil; Nobles; OSD; PLM-CAT; on the sixth hole. Below: The winners from Denso (from left) flocked to the Maylands Peninsula PM Piping; Spie Plexal; TD Williamson; T David Towns, Spencer Macsween, Graeme Sims Golf Course early to get nice and limber Valmec; and 360 Logistics. and Jason Dagg. for a big day on the green. While the only thing saving the golfers from the relentless heat was a light cool breeze, nothing was going to stop the pipeliners from competing as fiercely as ever. With some memorable (and not-so- memorable) shots to highlight the day, the pipeliners returned to the club house for FP 5 some well-earned refreshments and a bit of fun with a putting competition. ITI International Wolf Energy Working Better Together
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12 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au APGA NEWS AND EVENTS
A lesson in ethics for Brisbane
Ethics play a major role in the safety culture of organisations according to Professor Jan Hayes, who presented to 250 pipeline industry dinner guests at the APGA February Brisbane dinner.
rofessor Hayes, who has had a large involvement in the development of Psafety practices and policy for the pipeline industry, outlined findings from her research as an Associate Professor at Delegates enjoying pre-drinks at the Brisbane dinner. RMIT University and the Energy Pipelines CRC, and how they were applicable to the support good decision making but of ‘as low as reasonably practicable’ is pipeline industry. ultimately implementing a healthy safety critical for industry and for the industry’s Central to her findings was that all culture is a matter of judgement for standard, AS 2885. FP 6 safety decisions have embedded cost management. The dinner, which was held on considerations (whether acknowledged or Further, Professor Hayes implored 17 February, was sponsored by GHD and not), and that engineering analysis can attendees to understand that the principle Wasco. Ditch Witch
Professor Jan Hayes addresses delegates. APGA Chief Executive Cheryl Cartwright addresses dinner delegates.
14 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au APGA NEWS AND EVENTS
International insight for Melbourne members
WorleyParsons has been involved in many challenging projects; however, constructing the Trans Anatolian Pipeline, which traverses much of Turkey, was one of its toughest jobs yet, Peter Cox told the audience at the recent APGA Melbourne dinner. Peter Cox presents at the APGA Melbourne dinner.
r Cox, an APGA board member needed to adapt to the numerous Azerbaijan to Europe through the South and WorleyParson’s Global challenges presented by the enormous Caucasus Pipeline, TANAP and the Trans MVice President – Pipeline project, and what did and didn’t work Adriatic Pipeline. It is estimated to cost FP 7 Systems, outlined how the construction of for the company. more than US$11 billion, and will be fully the 1,841 km pipeline had to contend Once completed, the pipeline will run completed in 2018. with multiple governments, jurisdictions, from Azerbaijan, Georgia and Turkey to The dinner was sponsored by temperatures and cultures in order to be Europe. It will be a central part of the McConnell Dowell and Zinfra. successfully developed. Southern Gas Corridor, which will Mr Cox discussed how WorleyParsons connect the giant Shah Deniz gas field in Vacuworx
Raising the bar at the
Executive General Manager Business New Zealand Strategy and APGA Treasurer Tony O’Sullivan talk on the state of the pipeline and gas industries and planning for future dinner progress. Having worked in the pipeline construction business for over 20 years, The Australian Pipelines and Gas and with extensive managerial experience, Association’s presence continues Mr O’Sullivan spoke about the variety of to grow across the ditch with a pipeline projects he has worked on, as strong turnout at the association’s well as the lessons he has learned which have prepared him for future challenges. New Zealand dinner in March. The speech provoked much conversation, which continued later into the night over pproximately 30 New Zealand and a few cool refreshments. Australian pipeliners were present The APGA New Zealand Dinner was to witness Murphy Pipe and Civil’s sponsored by Core Group and Pipeline Murphy Pipe and Civil’s Head of International A Pipelines and Executive General Manager Business Head of International Pipelines and Speciality Supply Service Pty Ltd. Strategy and APGA Treasurer Tony O’Sullivan
16 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au APGA NEWS AND EVENTS
Benefits of gas outlined in Adelaide
Approximately 90 pipeliners attended the APGA’s March Adelaide Dinner to hear Australian Gas Networks CEO Ben Wilson outline the benefits customers can have from switching to natural gas.
r Wilson outlined how, for many years, government policy Mhas disadvantaged natural gas for electricity generation and for use in households. APGA Immediate Past President Mark Dayman presents Australian Gas Networks CEO Ben Wilson with an APGA Owner Member plaque. “Policies that encourage the development of renewable energy are clearly needed for “Natural gas is a low-carbon fuel; compete on emissions, half of it would a future of reduced carbon emissions, but electricity generated by gas has less than need to be generated by renewables.” those policies should not discourage the use half the emissions of electricity generated The Adelaide dinner was sponsored by FP 8 of gas which can help Australia make the by coal. Gas used directly in the home is GPA Engineering and PII Pipeline low carbon transition,” said Mr Wilson. even better; for electricity in the home to Solutions. Rosen
HPH 2 LOOKING AHEAD.
Stockton We plan for the future. More than one-third of ROSEN employ ees work in research and development, creating innovative products needed by the industry. An invest ment we are proud of.
www.rosen-group.com 18 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au YOUNG PIPELINERS FORUM YOUNG PIPELINERS FORUM
Young pipeliner profile Name: Liam Hatchell Age: 32 THE YPF IS ESSENTIALLY THE SPRINGBOARD THAT YOUNG PEOPLE NEED INTO Company: QGC A WEALTH OF KNOWLEDGE AND EXPERIENCE. Position: Lead Project Engineer – Trunklines – Liam Hatchell, QGC Lead Project Engineer – Trunklines
How did you become involved in the What pipeline projects have you pipeline industry? been involved with? If you’re under 40 and not yet involved in your state’s YPF chapter, visit Originally from the United Kingdom, as I have been involved in a number of involved and to network with people who the APGA website www.apga.org.au to sign up and start meeting your a child I got a taste of the oil and gas pipeline projects both small and large, the may otherwise seem unreachable. Astron Ad 2015 final_resize.pdffellow young 1 1/09/2015 pipeliners. 11:46 am expatriate life and travelled throughout most notable and memorable being The YPF has achieved this in part thanks South East Asia, finally settling down in DBNGP Stage 5, Arrow’s Bowen Basin to the commitment from the younger Perth where I followed in my father’s Development, and QCLNG Upstream. members, but also through our mentors footsteps and entered the oil and gas Having been involved with the QCLNG actively becoming engaged and supporting industry myself. project for five years now has been a the group. Not only have the networks I’ve After completing an engineering degree fantastic experience, and alone has made through the YPF helped my career, at the University of Western Australia provided me with the unparalleled but I’ve also gained many lasting friendships. Astron I found myself working for Alinta on the opportunity to be involved with the full Dampier to Bunbury Natural Gas Pipeline lifecycle of 28 pipelines, from FEED What role does the YPF play for (DBNGP) Project. through to handover to operations. young people in the industry? It was here that I met some of my first In addition to the strong networks it pipeline mentors and realised just how builds, the YPF is there to give its cable cover How long have you been involved in enjoyable this industry is – and how well the YPF? members the means to develop their own I’d fit in. In only my first few months of joining skills and knowledge. We hold a broad QGC Engineer Liam Hatchell. the industry I was introduced to the YPF range of events which are both educational Describe your current role in the through some very passionate members of and social, and every member is welcome is your industry. the WA Division, and was immediately to become as involved as they wish. My role at QGC currently sees me hooked. Only a short time later I had managing the engineering, procurement, managed to negotiate myself onto the Do you have any advice for people and construction phases of the two committee itself and have been heavily just now entering the industry? C M protection Charlie trunklines being installed as part involved ever since. First: get involved and enjoy every of the Queensland Curtis LNG (QCLNG) Of the nine years I’ve been involved I’ve moment of it. An amazing amount of Y HPI 1 Phase 2 Project. These two DN900 been fortunate to be on the committee of opportunities open up to those who are CM pipelines will be the largest installed by both the WA and QLD divisions, and have willing to jump in and ‘give it a go’. QGC under the QCLNG Upstream spent time as the State Representative Second: learn from those around you.MY Underground cable cover The long term safety measure development to date. of both. There are many people in this industry CY Astron Plastics In my personal time I also volunteer who have done it before and are more Thousands of kilometres of underground cable, CMY pipe and fibre optics are being laid into Australian with Standards Australia’s ME38 Why is the YPF an important than willing to tell you a story or lend soil through numerous infrastructure projects. K committees, specifically as Australia’s part of the Australian pipeline their advice, you need only ask. This has seen a major increase in the long term protection measures authorities are taking to nominated ISO representative. In this industry? protect their iMustnvestment from damage in tbehe future. on RH position I manage Australian engagement The YPF is essentially the springboard What value do pipeline companies Astron o ers Cable Cover that has been tested, within the 24 pipeline related ISO that young people need into a wealth of and organisations get from being used extensively in major national projects and standards and attend regular international knowledge and experience. involved in the YPF? conforms to AS4702-2000. meetings to review progress and It provides young members of the Supporting the YPF has many benefits Astron Plastics is Australia’s leading manufacturer development of these global standards. industry with the opportunity to become for individual pipeline organisations. of underground cable cover and is proud to be The YPF members themselves learn heavily involved in the long term safety of Australian contractors and citizens. skills, gain knowledge, and build a network across all aspects of the industry Want to advertise in this new regular which they then bring back to the feature in The Australian Pipeliner? organisation. Further, in my experience I’ve found that Contact Sales Manager David Marsh at most YPF members are very grateful for the Melbourne +61 3 9559 4273 Sydney +61 2 9829 1999 [email protected] to discuss opportunity to develop personally. When a www.astronplastics.com.au exposure opportunities. company supports the individual it is recognised and appreciated, with loyalty being gained as a result.
20 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au www.pipeliner.com.au THE AUSTRALIAN PIPELINER | APRIL 2016 21 YOUNG PIPELINERS FORUM A N A Queenslanders off to a strong start
By Jordan McCollum, Pipeline Strategic Operability Lead, Origin Energy
The Queensland YPF has hit 2016 running, and has hosted two educational events for its members thus far.
he first was an educational session presented and sponsored by APA TGroup, which saw 50 young pipeliners exposed to the inner workings of major gas transmission pipeline HERE’S HOW I-ROD™ WORKS: projects. Mounting the pipe on I-Rod’s The title of the presentation by rounded surface minimizes the Warwick Tidswell and Kerryanne Mallitt contact area, making it was ‘Asset creation - from cradle to grave’, impossible for water to become and the presenters provided their insights trapped underneath. I-Rod also to the successful management of a project elevates the pipe, which from concept to operation. It was a THERE’S ONLY increases air circulation and ONE REMEDY: light-hearted but informative session FP 9 helps evaporate moisture while Installing which provoked interesting questions and making it easier to inspect. I-Rod™ is the ongoing conversation well after official I-Rod’s durable thermoplastic only way to material prevents metal- proceedings had wrapped up. It was a ensure to-metal contact that can tremendous opportunity for young people corrosion-free accelerate corrosion when wet. in the industry to learn about gas pipe supports. A transmission projects. Queensland YPF members enjoy the presentation and refreshments. pipe sitting on Cresta CoatingsWHAT DOESN’T WORK: Less than two weeks later the flat support Rubber pads and wear pads ME-038 Standards Committee, which is forms a small trap even more moisture responsible for AS 2885: Pipelines – Gas crevice that against pipes and make the and Liquid Petroleum, held its regular traps water; this problem worse. softens the paint meeting in Brisbane. This provided an and allows opportunity for the Queensland YPF, with ASTOUNDING RECORD: moisture to sponsorship from Origin Energy, to I-Rod™ is specified by most contact bare major oil companies and has arrange a networking and educational steel. been installed hundreds of event with some of the most influential Corrosion thousands of times worldwide. names in the pipeline industry. quickly spreads Amazingly, in 26 years there Twenty-four young pipeliners had an and causes wall has never been a single opportunity to meet the 12 very loss. reported failure of a pipe experienced ME-038 committee members protected with genuine I-Rod™. at the Gresham in Brisbane’s CBD. Committee chair Susan Jaques provided an overview of the ME-038 Standards Committee and Peter Tuft provided an I-Rod™ products are available to fit all types overview and update on AS2885 sections From left: Gateway Consulting’s Peter Buchanan and Robert McEniery, and FE Consultants Byron and of supports, including zero, one and six. Andrew Pearce Sean Laird. provided an entertaining description of Grinnells, cradles and pipe shoes. They’re the offshore pipeline industry; Michael Liam Hatchell, provided excellent message through the event being the fact offered in a variety of Malavazos provided the regulator’s point coordination, chairing the discussions. that AS 2885 is developed by pipeliners, heavy-duty coatings of view; Craig Bonar challenged the These events are fantastic opportunities for pipeliners. and materials for crowd to think about the big challenges for young pipeliners to meet and learn It was also clear that the ME-038 service in within the pipeline industry; and from some of the most experienced people committee members strongly encourage temperatures ranging Ed Gaykema detailed the impact of in the industry. the active engagement of young pipeliners from -79ºC to 249ºC. AS 2885 on a pipeline operations business This event has been described as one of within the standards committees and as well as the pending update to part three. the Queensland YPF’s most successful welcome their contribution to the Visit us at: www.crestcoatings.com.au Qld YPF ME-038 committee member, educational events; the resounding Australian pipeline industry. Email: [email protected] Phone: +61 3 9945 2700 | Fax: +61 3 9945 2799 22 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au YOUNG PIPELINERS FORUM
Brewing for a big 2016
By Tane Bowels, Mechanical Engineer, GPA Engineering
On Saturday 27 February, a group of 18 South Australian Young Pipeliners convened for a day of socialising and beer appreciation.
he day included visiting four pilsner, ale or lager being tasted, and the The event was a great success providing microbreweries in the Adelaide latest major pipeline projects. a chance for the SA YPF to catch up and Thills for a beer tasting plate at each. This trend continued at the following discuss all things 2016. The event was suggested by the South two breweries as Adelaide turned on The SA YPF would like to thank the Australian (SA) YPF community as a another great summer day for the event. event sponsors APA Group, GPA substitute to the annual wine tour and, The final location back in Adelaide gave Engineering and Pentair without whom although the beer was no Barossa Shiraz, everyone one last chance for a final drink the day would not have been possible. it was delicious nonetheless. and discussion before departing. After initial introductions everyone settled in for the bus trip to the first destination, Prancing Pony in Mt Barker. Although it was early, conversations about the past year and future prospects was a key talking point among everyone while the first beer platter of the day was enjoyed. The second stop was Grumpy’s Brewery, for some amazing wood oven FP 10 pizza and another beer tasting, with conversation switching between the South Australia’s young pipeliners enjoying the sun and the sips. Murphy Pipe
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24 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au EPCRC
Innovative future: long-term support for the broader Australian pipeline industry
By Valerie Linton, Chief Executive Officer, Energy Pipelines CRC
The Energy Pipelines CRC has contributed solid research outcomes and support to the Australian pipeline industry, particularly to members of the Australian Pipelines and Gas Association Research and Standards Committee, since 2010.
hrough this partnership, researchers and industry advisors working with the Energy Pipelines CRC have helped Tinform standards as well as develop technologies and practices that are of significant value to industry. This was clearly seen recently at the annual Cooperative Research Centres Association (CRCA) National Conference held this year in Brisbane. The event was an excellent opportunity to meet with fellow Cooperative Research Centres as well as business leaders and politicians with a keen interest in the innovative future of Australia. A key highlight of this conference was the Deakin University–based National Facility for Pipeline Coatings Assessment (NFPCA) being recognised with an Excellence in Innovation Award by the CRCA. This award is given to CRC initiatives which embrace the core ethos of the CRC program: Energy Pipelines CRC CEO Valerie Linton. FP 11 bringing industry and research together to improve the commercial effectiveness of Australian business and benefit the broader community. This prestigious honour highlights the value will drive operations through this period. At this time I would and significance of the NFPCA to the Australian pipeline industry like to share with you two important objectives which I believe as well as the importance of continued research into pipeline are essential. These are: integrity. • Continuing to deliver the currently contracted work Pinard The success of the NFPCA at this event, as well as its recent outlined in the Commonwealth Agreement NATA accreditation, is testament to the hard work of the • Maintaining and improving upon the benefits to research team at Deakin University as well as input from industry stakeholders. advisors who have provided their time to support the laboratory. The research goals outlined in the current Commonwealth At this event I met with Mr Ken Fitzpatrick, the chair of the Agreement are crucial to the long-term success and resilience of new industry growth centre for Oil, Gas and Energy Resources. the Australian pipeline industry. Those who have attended Energy The establishment of this growth centre was announced by the Pipelines CRC/APGA RSC research seminars will know the Commonwealth Government in February. The growth centre has breadth of knowledge that has been accumulated since 2010 and now been rebranded as National Energy Resources Australia is continuing to grow. Our four major research programs into (NERA) and is based in Perth. The mission for NERA is to work materials, coatings and corrosion, construction and design as well towards seeing that the Australian energy sector will be a as public safety and security of supply have tangible benefits sustainable, innovative, globally competitive and productive across the entire industry and it is important that our contracted world leader by 2025. work in these areas is completed. NERA and the other industry growth centres are the Our stakeholders, including the APGA, play an important role cornerstone of the current government’s strategy for innovation in supporting current research projects as well as leading the and economic growth in strategic areas. development of future projects. In return, the industry-led My meeting with Ken was productive and highlighted the research is set up and delivered in such a way as to provide value mutual interests of NERA and the Energy Pipelines CRC. NERA through quantifiable savings as well as providing the workforce is currently establishing itself and starting their work of with the latest updates in best practices. supporting the industry. I look forward to working with NERA in The coming years will be an exciting time for all of those the future. involved with the Energy Pipelines CRC. As we shape the future In February the Energy Pipelines CRC Board approved a of this organisation together, ongoing engagement with APGA business plan to see the organisation move beyond the scheduled and groups such as NERA will be essential to ensuring that the end to the current round of Commonwealth funding in mid-2019 needs of the Australian pipeline industry can be met well into the while also supporting the delivery all of its current obligations. future by providing innovative and industry-focused outcomes for At the core of this business plan are three main objectives which Australia’s critical infrastructure.
26 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au INDUSTRY NEWS QUALITY AND SAFETY AT WORK. Choose your path: the future for Australia’s gas market
By Jeff D. Makholm, Senior Vice President, NERA Economic Consulting
Around the turn of the millennium, regulatory and judicial authorities confronted several forks in the road ahead regarding Australia’s gas market. The choices they made forged the present reality in eastern Australia – an illiquid and opaque gas market with pricing problems and consumer discontent from Queensland to Tasmania. Jeff Makholm, Senior Vice President, NERA Economic Consulting
n 1996, the Australian Competition Tribunal (ACT), in a Today, Australian authorities face a new fork in the road ahead. highly contested case, rejected the Australian Competition and Right now, the Australian Energy Market Commission (AEMC) FP 12 Delivering maximum performance through quality machinery, solutions and people, IConsumer Commission’s (ACCC) claim that anticompetitive is drafting reform recommendations to the Energy Council. This detriments outweighed the original public benefits of producer time, we all can anticipate the broader consequences of their PipeLine Machinery International (PLM) is ready to go to work for you. As your global joint marketing agreements. choices, for we have a definitive international perspective on the ® As a result, the Cooper Basin joint venture continues to possible paths ahead. Cat dealer for the pipeline construction industry, we help you perform no matter where the effectively dominate the sale of that gas through pipelines to Since the last time Australia considered major regulatory job takes you. Our complete line of purpose-built pipelayers, custom equipment solutions, Sydney and Adelaide. change, the United States’ (US) gas market has adapted to its PipeLine Machinery In 1998, the Victorian Treasury, over the public objections of competitive new regulatory regime to tremendous effect – innovative carriers and smart load monitoring technologies help customers like you work gas producers (whom I spoke for), borrowed from its recent embracing advanced technology to spur the entry of shale gas; electricity market design to impose ‘market carriage’ (a truly tilting the competitive electricity generation mix away from coal; safely and effi ciently all over the world. Let’s work together. Orwellian label) on the Victorian gas transmission system with pouring investment into new competitive pipeline links; driving the privatisation of gas and fuel of Victoria. Market carriage the competitive gas price away from oil prices – down to lows not socialised pipeline costs, dissolved pipeline capacity rights and seen since the 1970s (AU$2/gigajoule). created a regulatory barrier to gas shipments at Victoria’s borders Rather than Australia’s patchwork of over- and under-regulation, and deterred investment. the US chose to regulate broadly and fairly with a masterpiece of In 2001, the Australian Capital Territory, in another highly restraint: 282 federal employees in the gas division of the Federal contested case, limited the ability of the National Competition Energy Regulatory Commission (FERC) and a 2015 budget of Council (NCC) to recommend regulatory coverage for new AU$87 million – all in – dealing with licensing and ratemaking pipelines, finding that the Eastern Gas Pipeline did not meet the for three quarters of the world’s gas pipelines. National Gas Law criteria for coverage (I testified for the NCC in The US system reflects a brilliant paradox – each interstate that case: we lost). The ACT set the bar for coverage so high that pipeline mile is, and has been for more than 75 years, subject to it effectively deregulated all new gas pipelines and set the stage ultra-transparent licensing and skilful cost-based regulation of for the subsequent removal of coverage from most other pipeline prices. ROLLOVER PROTECTION LOAD MONITORING POWERLINE PROXIMITY significant transmission pipelines. However, capacity rights in those pipelines trade among These past choices – in isolation and surely unconsciously – shippers in unregulated ‘sublet’ markets. Gas producers can reach Roll Over Protection Structure The Cranesmart Load Monitoring VOLTEK’s Powerline Proximity undermined Prime Minister Keating’s 1995 call for “free and fair any buyer on the interstate pipeline system simply by acquiring (ROPS), convenient steps, handles Indicator (LMI) enables contractors Alarm and Range Limit Devices trade in natural gas”. capacity rights at the going price – no regulator involved. and seat belt indicator – just a few to manage and maintain a safer provide an unmatched degree Each body, dealing with narrow questions at different times, As such, simply reaching any interstate pipeline ends the of the safety features on the new and more effi cient jobsite. of protection for both pipeline would not have known the effect of their decisions on a broader competitive journey to market for producers, hence the veritable PL series pipelayers. equipment and the operator. competitive public policy. But the cumulative outcome of these explosion in technologically driven competitive innovation and choices, among others, created a gas market in eastern Australia the financial industry capital to support it. And at the same time, USA: +1-713-939-0007 beset with large-scale private arbitrations, a lack of competitive US gas pipelines, with their federal licenses and regulated prices, Canada: +1-780-377-0336 price discovery and barriers to competitive entry – not “free and are more profitable as a group than ever (certainly more so than China: +1-86-10-5960-1509 fair trade”. their Australian counterparts). Netherlands: +31-70-353-8279 Australia: +61-423-394-730 Your Global Partner for Pipeline Solutions 28 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au www.plmcat.com INDUSTRY NEWS
FEDERAL GOVERNMENT, IN COLLABORATION WITH THE STATES, COULD TURN TO A CONTINENTAL GAS MARKET REGIME THAT SO EVIDENTLY WORKS, VISIBLE IN NORTH AMERICA NOW IF NOT 15 YEARS AGO. – Dr Jeff Makholm, Vice President, NERA Consulting
European Union (EU) regulators chose an uncompetitive path, have paid a stupefying AU$692 billion – yes, billion – more than burdened by political and institutional endowments that Americans in the past six years for the gas that flows through inherently obstruct gas markets: sovereign internal borders; European pipelines. resistance to independent regulation or transparency; and Those who observe Europe have reason to be dispirited. protectionism for individual member-state ‘gas champions’. Europe’s institutional path dependency is a powerful force. It is While seemingly calling for competition, EU gas legislation has hard to foresee the reform of that system anytime soon, despite put a competitive gas market further out of reach. It forbids the evident cost. transparency, outlaws physical-path pipeline prices, interposes an But Australia is not beset by the EU’s institutional baggage. EU-wide electricity market design and promotes an explosion of It has reason to be hopeful as it faces the next fork in the road. new regulatory intervention. The Federal Government, in collaboration with the states, could As a result, EU gas prices remain closely linked to oil spot turn to a continental gas market regime that so evidently works, equivalents (about AU$5.64/gigajoule), new pipeline construction visible in North America now if not 15 years ago. in Western Europe is the slowest in the world, US coal heads to Such reform could rescue Australia’s gas market from its Europe where it can compete, evident shale gas remains firmly in illiquidity and opacity, embrace regulatory restraint, invite the the ground, and the financial industry shows no interest in financial markets in, create competitive price discovery and forming futures markets in the business. pursue the type of competitive and technological dynamism FP 13 The results for European gas consumers are terrible. Europeans regrettably lacking in Europe but on full display in the US. Ditch Witch • Process Control • Innovation • Leading Technology • Experience
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30 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au INDUSTRY NEWS
Forging our own path: the future for Australia’s gas market
By Steve Davies, Policy Manager, Australian Pipelines and Gas Association
This edition of Pipeliner features an article by
Dr Jeff Makholm of NERA Economic Consulting, on Steve Davies, Policy Manager, Australian Pipelines and Gas Association. the economics of international pipelines. Dr Makholm has advised business and government and his insights are one of the inputs to the current debate about IN ORDER TO ACHIEVE SUCCESS Australia’s gas markets. IN THIS AREA AKIN TO WHAT THE US HAS ACHIEVED, WE he Australian Pipelines and Gas Association (APGA) agrees with many of the key points of Dr Makholm’s WOULD NEED TO BE PREPARED Tadvice – importantly, that pipeline capacity purchased TO MAKE THE FUNDAMENTAL FP 14 under contract must be a fungible property right in order for it to CHANGES TO OUR REGULATORY be traded. However, there are some aspects of Dr Makholm’s advice that FRAMEWORK, INCLUDING A REGIME reflect ingrained cultural and institutional differences between the THAT ENCOURAGES VIGOROUS United States (US) and Australia, and we need to recognise these COMPETITION IN THE UPSTREAM before we stampede headlong into adopting a US style pipeline Kwik-Zip market model. SECTOR. Dr Makholm measures America’s success by four key metrics: a low gas commodity price; the profitability of pipeline companies; a vibrant market for secondary pipeline capacity; and in the upstream industry in general, it does not seem likely that the limited regulatory burden. we will see such an industry-shocking increase in supply in the In this article we attempt to better understand what is driving near term. these metrics of success. Profitability of pipeline companies Low gas price APGA agrees with Dr Makholm that virtually all US pipelines In recent years in the US has seen massive discoveries of shale are fully regulated. But paradoxically, this is why they are so gas flooding the market. This has caused the price to fall profitable. dramatically, to the point where it has displaced a large quantity This is driven by two key institutional features of the US of western Canadian supply. It is this drop in fuel costs that has regulatory regime: historical cost rate making with no indexation stimulated demand and caused a shift to gas-fired electricity of the asset base; and the pipeliner decides if and when to lodge a generation. This has caused the US coal to need to find new rate application. markets, leading to it being shipped to Europe, where it can In a historical cost environment, the value of the rate base will compete as a fuel against Russian gas. decay over time through depreciation. Other things being equal, So the first marker of success, the low commodity price, is not regulated pipeline tariffs would therefore have a natural tendency driven by pipeline regulatory arrangements, but by a flood of to decline over time. product onto the market. The pipeline company therefore has a disincentive to lodge a Do we see any similar supply shocks on the horizon in the rate application, because the tariffs derived through that rate Australian market? Arguably we did, in the development of the process are likely to be lower than the existing posted tariffs. coal seam gas fields, but we should remember that those Moreover, if a pipeliner lodged its last rate case in a relatively discoveries were almost entirely earmarked for export, causing high cost of capital environment, it is highly unlikely to lodge a price increases as traditional domestic supply seeks access to rate case that would see its allowed return on capital (and tariffs) higher margin export markets. reduced. Considering the current moratoria on onshore gas exploration The net book value of the asset in the business’s financial in Victoria and CSG in NSW and an apparent lack of competition accounts are reported in nominal dollars less depreciation,
32 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au INDUSTRY NEWS
SUBSEA so its financial statements will report revenues (based on the First as discussed above, pipeline companies choose when to original cost of the asset) over its net book value. Its reported lodge a rate application. Pipelines will not choose to lodge rate profitability will be very good indeed. applications to have their allowed cost of capital determined in PIPElINE Under this model, the pipeline company also gets to keep any this low interest rate environment, so the FERC will handle few efficiency gains it is able to make, possibly in perpetuity. rate cases indeed. This does not happen in Australia, as the regulatory framework The FERC, to its credit, has developed a highly effective generally requires the asset base to be indexed for inflation. Very regulatory process, from which we can learn. We might call it the INsPEcTIONs. little depreciation is deducted from the value of the capital base, ‘regulatory director’ approach. The FERC has spent decades and therefore the posted tariff would not be expected to follow a developing intrusive, rigid, ineffective and sometimes damaging downward trajectory. Moreover, the Australian framework regulatory regimes. With that history, it is now in a position to SOLVEd. requires the business to lodge an updated access arrangement issue a direction along the lines of: ‘Capacity trading is a problem. every five years. Any efficiency gains benefit the business for only You have two years to sort it out, or we are going to impose a five years. regulatory solution, and you’re not going to like it’. This kind of regulatory approach has proven to be highly Vibrant market for secondary capacity effective at encouraging industry action to quickly reach solutions American pipeline customers also know the regulatory to problems. But this approach does not require a battalion of framework, and they know that pipeline charges should tend to regulatory legislative draftspersons and compliance staff; it is not fall over time. They also know that the Gas Act includes terribly resource intensive in head count terms, so it comes at provisions that would allow customers to apply to Federal Energy quite a low cost. Regulatory Commission (FERC) to compel the business to lodge a It is worth noting that this is the approach the gas transmission rate case – something, as discussed above, that the business does pipeline industry has suggested should be applied by the AEMC not want to do. in the current gas markets framework review. You’ve got aging subseaFP pipelines 15 in some of the The savvy pipeline customer will negotiate a discount with the In Australia, we too have relatively low regulatory costs. In our pipeliner based on the threat of an application to the FERC; the case, the cost is low compared to what it might be if all world’s most challenging, corrosive environments. pipeliner is relatively happy to agree, as this discount only applies infrastructure was regulated. Costs are kept low through selective to this customer’s volumes. regulation. Some observers bemoan this fact and point to it as That savvy customer can then sell its unused capacity in the evidence our access regime is ineffective. Quest Integrity’s proprietary, ultrasonic in-line inspection technology and engineering secondary market, at a discount to the published tariff, and turn a Dr Makholm incorrectly suggests it is an accidental outcome. It assessmentQuest capabilities are structured to helpIntegrity you address the most complex and profit on the sale. In America, where there is money to be made, is important to remember that regulatory outcomes for access of difficult-to-inspect pipeline challenges. there will be a vibrant market in which to make it - and indeed infrastructure are rarely, if ever, optimal. The designers of our there is. access regime recognised this and sought to limit the application As discussed above, there is no natural decay in Australian of the regime to instances of demonstrated monopoly. In its last InVistaTM intelligent in-line inspection capabilities for subsea pipelines: ‘regulatory counterfactual’ tariffs to give the pipelines scope to review of the national access regime, the Productivity • Provides 100% coverage of geometry and metal loss in a single pass negotiate a discount with customers. There is, therefore, little Commission stated that the limited competition of a duopoly scope for shippers to sell unutilised capacity at a profit, and as a produces superior outcomes to those that are produced through • Inspects dual-diameter and multi-diameter step changes result there is no market for secondary capacity. regulation. That’s not the only reason for the absence of a strong Given that gas is a fuel of choice in this country, users can • Provides accurate data for heavy wall thickness and thickness transitions secondary market for capacity in Australia, importantly, we have source gas from multiple basins and we have an increasing level of • Operates and inspects bi-directionally a lack of market participants to drive demand for secondary interconnection, it should be no surprise that there are very few capacity. When considering what potential there is for an pipelines that are covered. The competition that these factors • Operates in low flow and low pressure conditions increased number of market participants, it is important to note produce is superior to the outcomes we’d see in an environment • Negotiates flexible, vertical and catenary risers with no over-speed issues that 80 per cent of east coast gas reserves are held by the three of complete regulation, a fact that is often overlooked. Queensland LNG joint ventures. • Requires little to no platform modifications or lifting equipment In Australia, we are now contemplating a more liquid Making our own path secondary market for capacity driven not by the potential for Could we replicate the US’s success in transmission pipeline • ATEX and TÜV certified compliant profit, but by shippers’ ‘fear of missing out’. It is anticipated that regulation? Of course we could, but defining the path to success the day-ahead capacity auction proposed by the Australian Energy must recognise the starting point, and our starting point (that is, Market Commission (AEMC) will drive shippers to offer capacity where we are today) is quite different from the current structure for trade at any price, as the alternative is market participants will of the US regulatory framework. Get the answers you need to effectively manage your most challenging pipelines. often be able to access pipeline capacity through the auction at In order to achieve success in this area akin to what the US has potentially very low prices, with the revenue going to pipeline achieved, we would need to be prepared to make the fundamental operators. changes to our regulatory framework, including a regime that encourages vigorous competition in the upstream sector. Low regulatory costs It may be a worthy journey, but we must acknowledge our Finally, Dr Makholm refers to low regulatory administration starting point. And if we do that, we are likely to conclude that costs, using the low the FERC head count, as a measure of the destination for Australia’s gas market is somewhat different success. But what is driving this efficiency? from the gas market in the US or Europe. QuestIntegrity.com CHALLENGE CONVENTION 34 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au
QI_Aus Pipeliner ad_Oct2015.indd 1 11/24/2015 12:13:26 PM INDUSTRY NEWS
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© TTstudio / Dollar Photo Club FP 16 Australia’s energy: gas on the front line AustrAliAn A joint brochure released by Australia’s leading gas associations – Australian Pipelines and Gas Association Richmond Wheel (APGA), Energy Network Association (ENA) and the Australian Petroleum Production and Exploration mAde solutions Association (APPEA) – has highlighted the critical importance of natural gas for Australia’s energy security.
ustralia’s bright gas future: (Western Australia) and northern competitive, clean and reliable (Northern Territory). A(ABGF) outlines the case for gas in Making up these markets are more Australia’s energy market, citing that the 100,000 km of gas pipelines that service gas industry continues to deliver the needs of 4.5 million Australians. low-emissions energy to the nation, providing energy security and convenience Pipeline connection at a competitive price. Every molecule of gas used in Australia All Custom Accounting for nearly one-quarter of is transported via natural gas pipelines and primary energy consumption and one-fifth pipelines will continue to be of vital 22% configurations of electricity generation, gas is one of importance to the nation’s energy security. Australia’s highest valued resources. In Still the most economical way to Gas share of fact, natural gas is the nation’s largest transport gas, pipelines will be needed to electricity anD capacities provider of stationary energy. support local as well as international More than half of the gas produced in demand for what is one of Australia’s generation Australia is shipped overseas, with the leading products. Can be aCCommodated nation currently the world’s third largest According to the ABGF report “gas 2013-14 producer of LNG. networks safely and reliably deliver an The Australian gas market is divided in important source of energy to around half to three distinct regions; eastern of Australian households. Gas is delivered (Queensland, New South Wales, straight from production centres via a Australian Capital Territory, Victoria, pipeline network which is predominantly www.richmondpiperollers.com.au Tasmania and South Australia), western underground and rarely affected by [email protected] 36 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au INDUSTRY NEWS Take Control.
50% 48% 38% of Australia’s gas Australian gas of Australia’s gas is production is production comes used for electricity exported from Western generation 2013-14 Australia
natural disasters such as bushfires, floods cent reduction in residential network 3.7 per cent per year over the last decade. or high winds”. charges, which would equate to saving up The report highlights that one of the to $46 on the annual bill. reasons for the growth in gas consumption Home delivery While in Victoria, Ausnet Services is reflected in the greater uptake of gas in Gas is one of the cheapest energy customers experienced a fall in network electricity generation, as well as its sources available to Australian consumers, costs of 17 per cent in 2013 and a further increased use in mining and industry. in some cases up to 80 per cent lower than 6 per cent in 2014, while Multinet Natural gas consumption was 1,402 mains electricity on an equivalent energy Services customers were the beneficiaries petajoules in 2013-14, according to the basis. of a 13 per cent saving in 2013. report, which is equal to 24 per cent of FP 17 Across the states gas saves customers These falling network costs, in energy consumption. money, with network operators conjunction with increased retail continuing work to reduce network competition, means that residential gas Industrial action charges. prices are set to remain competitive The ABGF Report highlights the role Over the next five years in New South despite rising wholesale prices. that natural gas plays in Australia’s Wales, Jemena’s customers are expected to According to Energy in Australia 2015, industrial operations. see savings of up to $118 per year due to a a report released by the Department of Commonly used to generate electricity, Worldwide 34 per cent reduction in network charges. Industry, Innovation and Science, heat and steam, natural gas is used in the In South Australia, Australian Gas Australian gas consumption has been production of alumina refining and Peter_Norman_Personnel_TAP_Feb16_QPS.pdf 1 27/11/2015 5:04 pm Networks recently proposed an 11 per growing steadily at an average rate of beverage and grocery production as well as being vital as an input in the production fertilisers, cleaners, polymers and refrigerants. Machinery Gas is also at the forefront of industrial innovation, with cases of increased We’re tapped in to People efficiency, cleaner energy and economic into Pipelines! growth coming from the use of natural C gas. We offer M For example, the report highlights • Recruitment Services – Contract/Temporary & Permanent natural gas desiccant systems used for Y • Payroll Services across Australia dehumidification provide major benefits to • Psychological Services Henkels & McCoy - New Mexico CM QPS 1 plastics, pharmaceutical and recycling MY industries. Who we are The Energy in Australia 2015 report CY • Engineering qualified & experienced Consultants also discusses the increase of gas usage in • Contract Payroll Administrators CMY industrial sectors, stating that the Remote control padding operation made easy with our SPD-150. • RegistePNPred Psychologist K electricity generation sector remains the • Remote control operation • Reversible foldable conveyor largest user of gas in Australia, accounting • Ideal for smaller padding operations • Optional ROPS available Our expertise T: 1300 THE KEY for 38 per cent of gas consumption in • Engineering • Adjustable escalator for steep gradients • Five models/sizes available T: +61 3 9095 8520 • Administration 2013-14. F: +61 3 9095 8539 • Finance The Government report also found that www.peternorman.com.au • Industrial the manufacturing sector accounted for 31 per cent of consumption, with the
Phone +61 0 400 144 432 | Intl. toll free 800 9675 3948 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au 38 [email protected] | www.worldwidemachinery.com Worldwide Group family of companies INDUSTRY NEWS
Gas provides more energy to the home than does electricity 18% Gas is largest provider of stationary Coal seam gas share 2014-15 energy (oil is largest energy overall, but it’s mainly in transport)
largest manufacturing consumers being non-ferrous metals and chemical, polymer and product manufacturing industries, backing-up the report from the gas industry associations.
Steering towards a cleaner future It is becoming clearer that natural gas has an important role to play in the transition from fossil fuels to renewable energy. According to ABGF “natural gas offers a FP 18 number of environmental benefits over other energy sources” and is “the least carbon intensive fossil fuel and creates less particulates and other air pollution”. Despite the proven benefits of using natural gas to deliver power to the SpieCapag electricity networks, coal remains the go-to power source. Indeed, the report states that: “the intermittent nature of renewable sources HPI 2 needs is balanced by power generation systems that are able to rapidly adapt to differing energy supply requirements. Gas power generation is the only technology McElroy to offer the rapid response required to work with intermittent power generation. Gas can provide a cleaner, more easily adjustable source of power than coal to support the growth of alternative power sources.” The report states that Australia’s network of natural gas infrastructure complements the electricity network and assists in mitigating peak electricity demand. Working in tandem with the electricity networks, Australia’s gas resources, pipeline infrastructure and distribution networks provides energy for water heating, cooking and space heating to 4.3 million homes and 133,000 commercial businesses, with natural gas generating 20 per cent of Australia’s electricity.
40 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au INDUSTRY NEWS STATS GROUP Northern gas for an eastern market
The development of Jemena’s Northern Gas Pipeline is rightly the talk of the Australian pipeline industry, with it being a major step towards a national gas grid and a huge new project for a quiet industry.
ith construction due to start in integrated into the station design by KBR encourage sub-contracting and jobs for early 2017, the 622 km, likely and installed on site by McConnell locals.” W14 inch pipeline is currently Dowell. going through the approval and concept Stakeholder engagement stage, including pipe size and processing Local benefits As with any pipeline project, liaison Managing Pressure, Minimising Risk options. With up to 900 jobs expected to be with stakeholders and property owners Most approvals have been granted, and created during the planning and will be a vital aspect going forward. pending all the land along the route is construction phase of the project, Jemena “Jemena has engaged with government, secured, first gas is expected to flow from Project Manager Jonathan Spink believes landowners, businesses and the broader 2018. there will be plenty of flow-on benefits to community since 2015 on a regular basis the local community, through and will continue to do so throughout the Contracts update employment, business opportunities and project,” said Mr Spink. The construction scope for the high Jemena’s investments in capacity building Self-Energisation pressure gas pipeline connecting Tennant programs. Key contractors on the NGP Creek to Mt Isa includes two compressor “Jemena wants to maximise the use of thus far include: stations as well as gas treatment facilities, local goods, services and labour from the Taper Lock Grips with the value of construction work regions where the project is located, and • McConnell Dowell expected to exceed $300 million. more broadly the Territory and western FP 19 • MRC Global Operator Jemena is managing Queensland,” said Mr Spink. engineering, all procurement and “Jemena is working with the Industry • Maloney Field Services construction contracts as separate work Capability Network (ICN) to identify • GPA Engineering packages. capacity in the regions and then promote • KBR McConnell Dowell was awarded the contract packages locally via our ICN construction contract for the pipeline and gateway portal for the project. • EcOz STATS Group facilities under an Early Contractor “We will be applying a significant • Circle Advisory Involvement model in November 2015. weighting in its tender evaluations to Under the Early Contractor Involvement model, Jemena and McConnell Dowell Valve Maintenance will work collaboratively together during the planning phase in 2016, while Bonaparte DARWIN Leak-Tight Seals Jemena’s Industry Participation Plan McArthur Zero-Energy Zone targets for local business contracts and Browse employment are shared by McConnell Double Block & Wiso Bleed Isolation Dowell. Georgina The design and engineering contract for Tennant Creek Mt. Isa the pipeline was awarded to GPA Carnarvon Canning Engineering, while the engineering Galilee Amadeus Gladstone contract for the facilities was awarded to Alice Springs KBR. Warburton Cooper Tecno Plug™ | High Pressure Pipeline Isolation MRC Global has been awarded the Officer Moomba BRISBANE contract to supply 636 km of X70 grade Surat/Bowen Clarence-Morton high-pressure coated pipe and induction The Tecno Plug™ provides fail-safe Double Block and Bleed pipeline isolation for high pressure bends, with delivery expected to PERTH SYDNEY applications while the system remains live and at operating pressure. Dual seals provide a commence in late 2016. ADELAIDE Additional contracts have also been Gunnedah zero-energy zone to enable maintenance work to be carried out safely and efficiently while awarded to EcOz (environmental Existing pipelines consultation), Circle Advisory (indigenous Gas basin MELBOURNE Gippsland meeting industry-led Double Block and Bleed requirement. and local business participation Otway Bass consultation) and Maloney Field Services (land consultation). HOBART Jemena is also awarding an engineering, procurement and fabrication package for The route of the NGP from Tennant Creek in the Northern Territory to Mt Isa in Queensland, where it will the processing scope, which will be connect to the Carpentaria Gas Pipeline. www.statsgroup.com
42 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au
The Australian Pipeliner.indd 1 21/03/2016 09:27:17 INDUSTRY NEWS Safety and Productivity
“The primary areas of interest for the • Remote driving risk – use of mine Jemena is cognisant of the family, fatigue people that we have spoken to are jobs specific vehicles by all personnel and health issues associated with FIFO and business opportunities. and in-vehicle to monitor driver works,” said Mr Spink. “Generally everyone has been very safety. Strategic work camps Jemena is also committed to maintaining supportive of the project as there are real locations will be needed to reduce its standard on environmental and cultural economic benefits for the Territory from driving distance. heritage protection. gas sector development.” • Fly-in, fly-out (FIFO) – up to “To the greatest degree possible the 900 people are needed to for the project is being designed to avoid or Project challenges construction of the pipeline. minimise any impacts to the environment With the pipeline route pushing through Jemena is seeking to employ as and cultural heritage,” said Mr Spink. some of the most remote outback in many locals as possible, and then More details on the Northern Gas Australia, Mr Spink says there will be a charter flights in and out for the Pipeline and its associated works are number of challenges that will have to be remainder of the workforce. expected to be known when detailed overcome during construction: “While this isn’t a unique challenge, design works commence in April 2016. • Access to water – negotiating bore access with landowners for dust suppression, trucking-in potable water for the camps and seeking GENERALLY EVERYONE HAS BEEN VERY town water for hydrotesting will be an issue in the dry north. SUPPORTIVE OF THE PROJECT AS THERE ARE REAL • Road access to pipeline route – ECONOMIC BENEFITS FOR THE TERRITORY FROM Jemena will need to construct and GAS SECTOR DEVELOPMENT. upgrade access tracks to reach the FP 20 pipeline route, some stretching as long Moving Pipe? as 100 km off the Barkly Highway. Increase productivity and safety, using our industry leading VacLifts. Pipeline PlantThey Hire deliver more features and benefits than any other machine available. Pipeline Plant Hire covers the largest range of VacLift equipment in Australia, from poly pipe to large diameter steel pipe. We can engineer a solution to suit your project that also improves productivity.
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44 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au pipelineplanthire.com.au INDUSTRY NEWS HYDROSTATIC TESTING SERVICES HYDRO
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© Kletr / Shutterstock • 400-1600 CFM DESICCANT / REFRIGERANT DRYING UNITS • 40000 kPa TWIN RANGEAXS PRESSURISATION PUMP Eyes in the skies: the rise of drones In recent years there has been a visible increase in the use of drones – or unmanned aerial vehicles (UAVs) NON DESTRUCTIVE TESTING – for both business and pleasure purposes. The Australian Pipeliner takes a look at the use of drones in the pipeline industry, and how they can change the way we operate our networks. • API 653 TANK INSPECTIONS urveying pipelines from the air is not of drones in surveying and land monitoring the right of way condition. a new tool to the pipeline engineer, management, drones can be used across the Definium LWS has employed the use of • PRESSURE VESSEL & SRV INSPECTIONS Sindeed photogrammetry (the use of pipeline design stages. drones on several coal seam gas (CSG) • GAMMA & X-RAY FACILITIES photography in surveying and mapping to From collecting data for route selection, projects in Queensland. One project was ascertain measurements between objects) special crossings and the location of for the production of as-built drawings on • ULTRASONIC INSPECTIONS has been used for decades in mapping, existing features and structures, the a new CSG pond, another was to map an route selection and monitoring of proposed pipeline corridor can be mapped older CSG pond which is undergoing • MAGNETIC PARTICLE INSPECTIONS pipelines. and contoured with high resolution images rehabilitation. However, in recent years, the via the use of drones. improvement in remote controlled planes, This data can then be used for design, The benefits of drones quadcopters, digital cameras and battery creation of alignment sheets, special Drones allow large areas to be mapped life has allowed photogrammetry to be crossing design, and volume calculations. safely and they are very cost effective done with drones. Prior to construction, drones can be when compared to traditional survey Previously this was a costly exercise only used for obtaining high resolution (hi-res) methods. possible from an aeroplane, which took up imagery or video for pre-construction One of the major benefits is the high-res valuable man hours. condition reports e.g. roads, footpaths, aerial images that are taken from the creeks. drone, are difficult to obtain with MACKAY OFFICE ROCKHAMPTON OFFICE NATA Accreditation: 12649 Drones can be used post construction to traditional surveying methods. Areas that Drone functionality Mr Peter Nelson Mr Brett Nelson According to Definium LWS Australia obtain the as-built rehabilitation surface are inaccessible by foot (steep slopes, Ph. 61 (07) 49525500 Ph. 61 (07) 49264744 See our web site for more details Director Neil Severns, who employs the use with imagery, and thereafter for cliffs, swamps etc.) and areas inaccessible Fax 61 (07) 49525511 Fax 61 (07) 49264788 Email: [email protected] Email: [email protected] www.axsndt.com.au 46 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au
AXS_FP.indd 1 14/04/10 12:39 PM INDUSTRY NEWS
www.ottowayengineering.com.au for safety reasons (operating facilities, • Weather conditions – wet weather amount of time drones can be Email: [email protected] plant, transport corridors) can be and winds over 30 km/h can be airborne, so larger projects would inspected and mapped safely with drones. problematic in controlling and require surveying to be split into operating drones; several flights. Drone drawbacks • Vegetation – mapping in dense Despite new technology such as drones vegetation limits the use of drones; Droning on streamlining data collection, sometimes • Underground services – for obvious Drones are becoming more and more there can be problems their use: reasons drones are limited in popular across a wide range of industries, • Accuracy – high-accuracy surveys underground environments which not just the pipeline industry. still require traditional survey require ground truthing; and, In Australia, drones are being methods; • Flight times – batteries limit the increasingly used for mapping and surveying of projects, particularly on Pipe spool Fabrication large-scale earthworks and construction projects. Pressure Vessel Fabrication Coupled with this rise in the new TRENCH BREAKER SPRAY FOAM technology comes legislation and policy Onsite Installation concerning its use. In Australia, the use of drones is Design and construction governed by the Civil Aviation Act (1998) and regulations, directives and of Oil and Gas Facilities aeronautical information and notices from the Civil Aviation Safety Authority (CASA) Pipeline Construction and AirServices Australia. FP 22 Civil Aviation Safety Regulations 1998 (CASR) Part 101 applies to the operation of unmanned aircraft, while CASA has issued an advisory on UAVs, which provides guidance on the construction and operation of UAVs and the means whereby Ottoway 02 9678 9833 they may be legally operated. [email protected] To fly a drone for commercial purposes in Australia, the business requires a UAV HPI 3 Operator Certificate and the operator will require a UAV Controller’s Certificate.
Drones on the rise Australian There can be little doubt around the fact that the use of drones, or UAVs, can streamline inspection and mapping processes particularly for industries such Urethane as pipelines and gas. However, with this streamlined functionality and timescales, operators must be wary of making sure that the Certi ed ISO 9001:2008 Australian Urethane Systems provides polyurethane smallest details aren’t missed. Certi ed ISO 4801:2012 foam systems, processing equipment, application As mentioned above, detailed and knowledge and training to pipeline contractors. accurate surveys will still require traditional inspection methods to ensure You can reduce your costs, construction time everything is safe to move forward. Adelaide 61-67 Plymouth Road Wing eld SA 5013 PH: 08 8341 0045 FAX: 08 8341 0876 and minimise time in the trench by including into But it is difficult to argue with the fact your scope of works the full control of the trench that, particularly the pipeline industry Queensland 18082 Warrego Highway Dalby QLD 4405 PH: 07 4662 2901 FAX: 07 4662 2502 breaker process. which operates over massive distances, drones can be another tool that pipeliners Visit us online: www.ausurethane.com.au can turn to make their job just that little bit easier.
Australian_Urethane_HPI_TAP_Feb14.indd 1 9/12/13 10:45 AM 48 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au FABRICATING AUSTRALIA’S FUTURE TRAINING
Standardising pipeliner training
By Karen Polglaze, Training Manager, APGA
The Pipeline Engineer Training Project is drawing to a close after a host of significant achievements that will provide an enduring legacy for the future of pipeline engineer training in Australia.
evelopment of all the major elements of what has become a comprehensive framework for understanding and Karen Polglaze, Training Manager, APGA. Dassessing competency in Australia’s pipeline engineers is almost complete. Born out of a concern that the industry was experiencing to make decisions and/or provide approval in a range of generational change in a way that might lead to future gaps in situations. knowledge, and hampered by the likely endurance of an industry Providing guidance to pipeline licensees and owners to size that would be unable to support post-graduate recognise the particular blend of knowledge and experience university-based training, the project began in 2009 with what required of an engineer to be a competent person in the different was essentially a blank sheet of paper. range of circumstances addressed in AS 2885, was a key factor in Seven years later, we have a comprehensive framework of more APGA’s decision to develop a competency-based system for than 200 competencies in the onshore sector, which include pipeline engineer training. FP 23 competency areas for both plastics pipe and composite pipe, The competency standards form a detailed matrix outlining the something which was not included in the first scope of knowledge needed, experience required and the resulting development. As well, the expansion of the competency standards expertise for each competency across 21 areas of pipeline into the offshore sector is now almost complete, with the official engineering – for example, pipeline structural integrity or launch scheduled for 21 April. corrosion control. A number of tools and resources were created for the onshore The competency standards and their associated tools and Fast Fusion competency standards to make it easier to use the competencies resources have a range of uses. These include career planning, and to access training courses. These tools and resources will also designing training courses, skills assessment for individuals and be replicated for offshore pipeline engineers. teams for project planning, recruitment, and planning staff The final element is registration of pipeline engineers based on rotations to engineering staff can access a range of vital industry the competency standards. This is now in place for onshore oil experiences. and gas pipeline engineers and should be available later in 2016 for offshore oil and gas pipeline engineers. The offshore competency standards The offshore competency standards were the dream of some of Why a competency-based system? our hard-working and dedicated members in Western Australia Pipeline engineering is multidisciplinary, requiring knowledge who scoped, drafted and developed the competency standards over and understanding of aspects of mechanical, civil, chemical and the past five years. These were then reviewed by a panel of other engineering as well as pipeline-specific skills. These are 15 global experts actively working in the offshore pipeline industry. mostly learned through on-the-job experience and in-house APGA members worked throughout the program in training. conjunction with the Society for Underwater Technology (SUT) Pipeline Engineer Training Program Project Manager Chris which is developing a set of competencies for subsea engineering. Harvey said there were good reasons to opt for a The 57 competencies related to offshore pipelines were developed competency-based system. under the APGA program and will be used by SUT in its system. “The reason for choosing a competency-based system is that it Of particular concern to the chairman of the reference group is widely recognised as the most effective and efficient approach which led the development of the offshore competencies, Eric Jas, to training,” said Mr Harvey. has been the separation of the offshore and onshore pipeline “A competency-based approach provides maximum flexibility sectors. Companies operating in both sectors is a rarity. in learning methods and targets outcomes rather than process. “This is not only an issue in Australia; it occurs in many other It allows engineers who have developed expertise and countries which have a specific national design code for hydrocarbon competency simply through experience and self-learning to be pipelines,” Mr Jas wrote recently in World Pipelines magazine. recognised, while providing a path for developing engineers to “In many cases there is inconsistency between the two codes. target their efforts.” “A single pipeline system may travel from offshore to onshore; Importantly, the Australian Standard for gas and liquid and the design, construction and operational methods can be petroleum pipelines, AS 2885, requires ‘competent persons’ vastly different.
50 THE AUSTRALIAN PIPELINER | APRIL 2016 www.pipeliner.com.au TRAINING
“It is at the shore crossing where both industries meet. Most that engineers who are registered have committed to a code of pipeline engineers feel comfortable in their own space (on dry ethics and to continuing professional development. Public safety land above the high water mark, or on the seabed covered by at is significantly enhanced when only competent practitioners are least 5 m of water). The zone in between these two (the shore registered and provide engineering services in critical areas. crossing) is often either incorrectly designed or under-engineered For engineers who practice in Queensland there is an additional by the time the construction contractors are engaged. Depending benefit as the Board of Professional Engineers of Queensland on the level of expertise of the contractors, and the ability to (BPEQ) has added pipeline engineering as an area of practice for effectively collaborate between onshore and offshore, it is no Registered Professional Engineers of Queensland (RPEQ) and this wonder that complications are often experienced during the will recognise registration of pipeline engineers by the National construction and operational phase of a pipeline at this location. Engineering Register. “For this reason it is essential that the pipeline engineering The process for registration for offshore pipeline engineers is competencies, which have been developed in parallel for onshore still being finalised, but it is expected that there will be two and offshore remain fully compatible so that interfacing the classifications in the special area of practice: offshore and engineering between them can be performed effectively and onshore. Competency will be assessed on applicants meeting the efficiently.” minimum requirements for either offshore or onshore. The offshore pipeline engineer competency standards will soon be available on the APGA website. In-kind contributions el ne r y o The Pipeline Engineer Training Project has been an enormous Registration as an oil and gas pipeline engineer undertaking for APGA and its benefits, through the continuing Engineers Australia has recognised that pipeline engineering is maintenance of the competency standards and the increasing highly specialised and has created a special area for national numbers of registered oil and gas pipeline engineers, will go on registration of oil and gas pipeline engineering. The APGA for decades. It would not be possible to undertake a project like Pipeline Engineer Competency Standards are the basis of this without the significant contribution made by our members’ assessment for registration. companies and the people who work for them who willingly Registration as a pipeline engineer means you will be share their knowledge and experience for the benefit of all. recognised inside and outside the industry as having standing as a Three significant reference groups of volunteers and a large reliable, responsible and professional pipeline engineer. number of individuals have given their time and expertise over FP 24 Registration enables government, industry and individual hundreds of hours to ensure that this project was completed to a consumers to engage the appropriate practitioner or team to high quality. Future generations of pipeline engineers will thank perform the required engineering services and to have confidence you as will we all. AXS Want to make 2016 your most productive year yet? u pg r a d e
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