South West Queensland Pipeline (SWQP) and Queensland to South Australia/New South Wales Link (QSN LINK)
The SWQP is a 935 kilometre pipeline from Wallumbilla in Queensland to Moomba in South Australia with a current capacity of approximately 168 terajoules per day. The SWQP includes the recently commissioned 180 kilometre QSN Link running from Ballera to Moomba. The SWQP has midline compression near Cooladdi as well as compression at Wallumbilla.
The SWQP (incorporating the QSN Link) provides a connection between gas producers in the Bowen/Surat Basin in south eastern Queensland and customers in Mt Isa (through its connection to the Carpentaria Gas Pipeline) and South Eastern Australia gas markets (through its connections to the Moomba to Adelaide Pipeline System and the Moomba to Sydney Pipeline). At Wallumbilla, the SWQP connects with separate pipelines to Gladstone and Brisbane.
The SWQP is configured to receive gas at Wallumbilla from a number of different gas fields in south eastern Queensland and to deliver that gas into pipelines to supply Gladstone and Brisbane or to flow that gas in a westerly direction to Ballera or Moomba.
The SWQP also delivers gas to various locations along the pipeline including supply to the Roma and Barcaldine power stations.
Contracted revenues
The SWQP is underpinned by long term contracts with a number of customers out to at least 2023.
Asset condition and remaining asset life
The SWQP was constructed in 1996, so is relatively new and in good condition. It has low ongoing capital expenditure requirements to maintain its existing capacity. The estimated remaining life of SWQP is in excess of 40 years.
The QSN Link component of the SWQP was constructed in 2008 and commenced commercial operation in January 2009. As it is a new pipeline, it has low ongoing capital expenditure requirements to maintain its existing capacity with an estimated remaining life in excess of 40 years.
Outlook
The SWQP has a number of opportunities for future growth.
Epic Energy, as a minimum, has committed to the second stage expansion of the South West Queensland Pipeline through the installation of a further two mainline compressor stations following the exercise of an option by AGL Energy. Under this expansion, Epic Energy will transport additional quantities of gas over the term of the AGL agreement commencing from January 2013 at the latest.
In June 2009, Epic Energy signed a conditional long term Gas Transmission Agreement with Origin Energy to underpin the proposed Stage 3 looping expansion of the entire 935 km SWQP (including the QSN Link). The project involves the construction of a new 450mm diameter pipeline adjacent to the existing SWQP as well as further compression at the inlet of the SWQP at Wallumbilla. The expanded SWQP capacity would be increased from 168 TJ/d to approximately 380 TJ/d.
The project is subject to Epic Energy securing funding for the development and, should Epic Energy reach financial close on the Stage 3 expansion, it is anticipated that the Stage 2 expansion will be deferred and the capacity that was to be provided by the Stage 2 expansion will be incorporated into the larger looping expansion of the SWQP. There remain a number of further expansion opportunities of the SWQP through the installation of further compression.
For more information on the SWQP services, contact Epic Energy's General Manager Commercial on (03) 8626 8466.
