Moomba to Adelaide Pipeline System (MAPS), South Australia
MAPS is one of Australia’s largest pipelines, featuring a 1,185 kilometre pipeline (including laterals) with a fully compressed maximum indicative winter capacity of 418 terajoules per day. The pipeline provides gas transmission services to Adelaide and South Australian regional centres from the Cooper Basin production and processing facilities at Moomba and South East Queensland producers via the SWQP and QSN LInk.
Two major lateral pipes connect to the MAPS mainline. The Port Pirie/Whyalla lateral has a maximum capacity of around 24 terajoules per day with the majority of demand being from a major industrial gas user in Whyalla. The Angaston lateral feeds the Riverland area in South Australia with a maximum capacity of around 20 terajoules per day. The major connections on this lateral include large industrial gas users and the Envestra-owned Riverland Pipeline supplying users in Berri, Murray Bridge and Mildura.
MAPS is the only pipeline currently delivering Cooper Basin gas to the South Australian market. The MAPS also delivers coal seam gas from south east Queensland to south eastern Australia.
Contracted revenues
Contracted revenue cover remains strong through to the end of 2015, with some contracts extending out to various points up until 2020. Discussions with Epic Energy’s customers are ongoing and recontracting will now be continuous, with new contracts signed on a rolling basis. This will extend forecast revenue coverage incrementally, rather than through major recontracting events. This was demonstrated by the signing of a new long term contract with Adelaide Brighton Cement for the transportation of gas on the MAPS to two industrial sites for a period of 10 years during 2008.
Asset condition and remaining asset life
Recent pipeline integrity survey and inspection results confirm that MAPS has been appropriately maintained and continues to meet current Australian design standards. Monitoring and inspection work has found no evidence of stress corrosion cracking. Independent technical assessments carried out by engineering consultants in 2004 and 2006 have concluded that, with prudent ongoing monitoring and maintenance, the remaining life of the asset is in excess of 20 years. Epic Energy management’s view is that the asset life expectancy is in excess of 35 years.
Outlook
Epic Energy’s management will continue to work with existing and potential customers on MAPS to secure future revenue streams, to further develop transportation products for the market, and to work with northern gas producers to introduce new, competitive gas supplies into the southern markets.
MAPS major contracts are with significant and reliable business partners in the energy and industrial sectors, including end users such as Origin Energy, AGL, International Power and OneSteel.
MAPS is well placed to benefit from the increased gas flow of coal seam gas on the SWQP and QSN Link. This will allow the MAPS to pursue opportunities to support growth in the power generation market as a result of general demand growth and resulting from the proposed introduction of an emission trading system. In addition to the contracts already secured discussions are continuing with customers on MAPS with the potential to secure further growth in revenues over the medium to long term.
