SEA Gas Project Environment Effects Report / Environmental Impact Report October 2001 SEA GAS PROJECT ENVIRONMENT EFFECTS REPORT (VICTORIA) and ENVIRONMENTAL IMPACT REPORT (SOUTH AUSTRALIA) South East Australia Gas Pty Ltd (A.C.N. 096 437 900) Level 13, 1 King William Street Adelaide, South Australia 5000 Telephone: 08 8217 5859 Facsimile: 08 8217 5858 Email: [email protected] © South East Australia Gas Pty Limited (SEA Gas) October 2001 Published by SEA Gas This publication is copyright.Apart from any fair dealing for private study research, criticism or review, as permitted under the Copyright Act 1968, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying or otherwise, without prior permission of the copyright owner. ISBN 0 9579854 0 1 SEA Gas Project EER/EIR Preface Preface The proposed SEA Gas Project requires a variety of regu- Southern Grampians Shire Council latory approvals under Victorian and South Australian leg- 111 Brown Street islation.This document is a joint Environment Effects Report HAMILTON / Environmental Impact Report (EER/EIR) prepared in support of applications for a South Australian Pipeline Glenelg Shire Council Licence and Victorian Pipeline Permit under the South Cliff Street Australian Petroleum Act 2000 and the Victorian Pipelines PORTLAND Act 1967. West Wimmera Shire Council Public Exhibition 49 Elizabeth Street The EER/EIR will be available for public comment until EDENHOPE Friday 7th December, 2001. South Australia In South Australia, a Statement of Environmental Primary Industries and Resources SA Objectives (SEO) will also be exhibited concurrently with 101 Grenfell Street the EER/EIR. The intent of the SEO is to outline the ADELAIDE environmental objectives to which construction and oper- ating activities must conform and the criteria upon which Naracoorte Lucindale Council achievement of these objectives will be assessed. De Garis Place NARACOORTE Copies of these documents can be obtained from SEA Gas, by telephoning Ms Louise Munro on 08 8217 5859. Tatiara District Council The documents can also be viewed on the Project Web c/- 34 Hender Street Page (www.seagas.com.au).The documents will be avail- KEITH able for viewing at the following locations: Coorong District Council Victoria c/- 95 Railway Terrace Dept of Natural Resources and Environment TAILEM BEND Library 8th Floor, 240 Victoria Parade Rural City of Murray Bridge EAST MELBOURNE 2 Seventh Street MURRAY BRIDGE Dept of Infrastructure Nauru House, Upper Plaza Mid-Murray District Council 80 Collins Street 49 Adelaide Road MELBOURNE MANNUM Corangamite Shire Council The Barossa Council 181 Manifold Street 1 Washington Street CAMPERDOWN ANGASTON Moyne Shire Council Gawler Council Princes Street Murray Street PORT FAIRY GAWLER i Preface SEA Gas Project EER/EIR City of Playford • Indicate whether the Project’s environmental objectives, Warook Drive goals and assessment criteria are appropriate. SMITHFIELD • Provide any additional information you believe is Salisbury City Council required before an adequate assessment of the environ- 12 James Street mental impacts of the Project may be made. SALISBURY Further Information Port Adelaide Enfield Council Further information regarding the SEA Gas Project can 161 St Vincent Street be obtained from the Project Web Page – PORT ADELAIDE www.seagas.com.au, or by contacting: Comments Mr Jim Kouts Comments regarding the proposed project should be pro- Corporate Affairs Manager vided by Friday 7th December 2001, to either of the fol- Australian National Power lowing: for the SEA Gas Project The Manager Level 13 Minerals and Petroleum Tenements 1 King William Street DNRE ADELAIDE PO Box 500 South Australia 5000 EAST MELBOURNE Telephone:08 8217 5859 Victoria 3002 Chief Petroleum Engineer Petroleum Division PIRSA GPO Box 1671 ADELAIDE South Australia 5001 Comments should be in writing and should: • Identify the Project. • Provide your name and address. • Identify any special interest you may have in the Project (where relevant). • Suggest changes that you consider may improve the Project. • Identify any issues that you consider may have been omitted in the proposal. • Indicate whether the views expressed in the document correspond with your knowledge of the local situation. • Indicate whether you believe any additional safeguards should be adopted. ii SEA Gas Project EER/EIR Summary Summary Introduction Completion of the Adelaide – Melbourne – Sydney high The SEA Gas Project is an important new strategic energy pressure gas transmission links will stimulate competition supply development for southeastern Australia,which aims between gas producers and between gas transporters, to protect future gas supplies for both South Australia and resulting in commercial benefits for industrial and Victoria. Central to the SEA Gas Project is a 670km trans- domestic gas consumers. In particular, the Project will mission pipeline that will complete the Adelaide- provide opportunity for long term competitive gas supplies Melbourne-Sydney high pressure gas transmission links. as new gas fields are developed and compete to meet growing market demands. Australian National Power and Origin Energy have formed the joint venture company South East Australia The SEA Gas Project will provide a range of further Gas Pty Ltd (SEA Gas),to develop the Project. substantial benefits to both South Australia and Victoria, as it will: The proposed Port Campbell to Adelaide pipeline will • stimulate the development of the Minerva and Yolla gas commence at the Iona Gas Plant, northeast of Port fields Campbell,connect to the Minerva Gas Plant and terminate • create a new market for recent substantial offshore at the Pelican Point Offtake Station on Torrens Island Otway Basin gas discoveries northeast of Adelaide (refer to Map 1). Construction is • provide considerable economic benefits at the regional, scheduled to commence in the third quarter of 2002, with State and National levels the first delivery of commissioning gas in October 2003 • provide substantive new sources of LPG and refinery and commencement of commercial operation by January feedstock for Victorian industry and commerce,and 2004. • contribute to Australia’s ability to meet its Greenhouse gas commitments, by providing natural gas as an alterna- The pipeline will transport at least 70 petajoules (PJ) of tive to more Greenhouse gas intensive fuels such as coal. natural gas per year for the foundation shippers, which include Australian National Power, Origin Energy and Background SAMAG. It is planned to increase the pipeline capacity In June 2000, the South Australian Government called for beyond 70PJ per annum to cater for third party access and expressions of interest for the provision of a new gas supply additional customers. Furthermore, SEA Gas is pursuing into the State. The development concept preferred by the regional markets and expects to develop lateral pipelines to Government was construction of a transmission pipeline to centres such as Portland, Casterton and Naracoorte and to access gas from the Victorian Otway Basin. An intensive tie into the existing local transmission and distribution screening process followed and in March 2001 the State network at Katnook in the southeast of South Australia. Government selected the Australian National Power / Origin Energy / SAMAG alliance as the preferred pipeline Gas will initially be sourced from the Minerva and Yolla development proponent. fields and the Gippsland Basin, with long term supplies expected to be drawn from fields such as Geographe and On the 1st March 2001 the South Australian Government Thylacine. As such, it is predicted that the $250 million and the development alliance signed a key Facilitation SEA Gas Project will underpin regional petroleum devel- Agreement for the Project. As part of this agreement the opments in Victoria estimated to be valued at more than $1 Proponents are required to build a pipeline with an initial billion. capacity of at least 45 PJ/annum with the potential for the capacity to be increased to 60 PJ/annum, and to complete The Need for the SEA Gas Project the project by January 2004. The SEA Gas Project will increase the security of future gas supply for both South Australia and Victoria and will create a Project Proponent truly competitive gas market for southeastern Australia. The SEA Gas is a joint venture company established specifically Governments of both States have identified a new, inde- to develop the SEA Gas Project. The company is owned pendent source of energy as a strategic priority. equally by Australian National Power and Origin Energy. iii Summary SEA Gas Project EER/EIR Australian National Power is a part of International Power, permit must be granted prior to a licence being issued to one of the largest independent power companies in the construct and operate the pipeline. The pipeline permit world with assets in thirteen countries, primarily the and licence are obtained from the Minister for Resources United States, Europe and Australia. The company and Energy,via Minerals and Petroleum Victoria (MPV). currently owns and operates power stations in both South Australia and Victoria. Before the issuing of a permit, the development of a gas pipeline may require an environmental assessment under Origin Energy is a major Australian company whose the Environment Effects Act 1978. The Minister for diverse interests include exploration and production of Planning has determined