Utility November 2014

www.utilitymagazine.com.au

Issue #4, November 2014

Engineering, Construction & Maintenance

GAS PIPELINES

OUR ENERGY BACKBONE

SMART GRIDS, SMART CITIES

HDD

GOES MAINSTREAM WATER

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SEWER

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ELECTRICITY

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GAS

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Issue #4, November 2014

UTILITY MAGAZINE

ONE CRAWLER,

PIPELINES

OUR ENERGY BACKBONE

SMART CITIES

HDD

GOES MAINSTREAM WATER

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SEWER

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ELECTRICITY

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GAS

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NBN

Jim Cresham completes the final ‘golden weld’ on the APLNG gas pipeline.

Published by

Monkey Media Enterprises ABN: 36 426 734 954 PO Box 3121 Ivanhoe North VIC 3079 P: (03) 9440 5721 F: (03) 8456 6720 monkeymedia.com.au info@monkeymedia.com.au utilitymagazine.com.au info@utilitymagazine.com.au ISSN: 2203-2797

Publisher and Editor Chris Bland Managing Editor Laura Harvey Associate Editor Michelle Goldsmith Marketing Consultants Aaron White Cynthia Lim Creative Director Sandy Noke

welcome FROM THE

EDITOR

The gas pipeline industry has experienced an extraordinary decade of growth and in this edition we take an in-depth look at one of the biggest projects of recent times, the Australia Pacific LNG project.

APLNG is one of three mega CSGLNG projects currently being developed in Queensland, taking advantage of the state’s massive CSG reserves and exporting it as LNG. These three projects have been a major focus of the gas industry for a number of years.

Our in-depth feature article on APLNG takes a close look inside the project, with a focus on the construction of the gas pipeline associated with the project.

As these three CSG-LNG edge closer to first LNG deliveries, we’ll start to notice a shift in focus for the gas pipeline industry. While there is plenty of construction work still ‘in the pipeline’, the industry is also increasingly focusing on the integrity and maintenance of the existing network. Turn to page 30 to read our article on the importance of maintaining our large network.

It’s great to be able to share this edition with readers at the Australian Pipeline Industry Association (APIA) Convention this year. I attended my first APIA Convention in 2003 and look forward to attending many more. There is no event quite like it in the way it brings together all stakeholders in the pipeline industry, and creates a forum where all pipeliners can share an honest discussion across all job levels and between competitors. I look forward to talking to as many as you there as possible.

Another key focus for this issue has been the continual drive towards smart utilities. The recently released Smart Grid, Smart City report contained fascinating data obtained from a fouryear trial of Australia’s first commercialscale smart grid rollout. Read ENA Chief Executive Officer John Bradley’s thoughts on the report on page 6, and see our article covering the findings of the trial on page 62. This edition of Utility will be distributed at Australian Utility Week, where the findings of the report will no doubt be under the microscope.

Another interesting report covered in this edition, is the Water Services Association of Australia’s flagship report for 2014, Improving economic regulation of urban water. It’s a comprehensive report which calls for independent, light-touch regulation.

Another topic that is dear to my heart is horizontal directional drilling (HDD). My involvement with the HDD industry traces back to 2004. HDD was once a novel technology, and over the years it has become more advanced and commonplace, having been used on projects such as APLNG, the NBN rollout and the Peninsula ECO sewerage connection project in Victoria.

Work is being done to establish standards and best practice in HDD, which we cover in this issue. HDD is being used by all utilities, and it’s important to continue to promote the economic, social and environmental benefits HDD can provide to ensure this growth continues.

Chris Bland Publisher and Editor

November 2014

SMART GRIDS, NOVEMBER 2014

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ISSUE 4

Engineering, Construction & Maintenance

CONTENTS

14

GAS PIPELINES Building a gas pipeline: the APLNG story.......................... 14 The recently completed 530 km APLNG gas transmission pipeline has occupied much of the Australian gas pipeline industry for several years. We take a look at each stage in the construction of this world-leading gas pipeline project.

Gas pipelines: where to now?..... 22

26

LAND ACCESS Community engagement key to pipeline industry legacy.............. 26

PIPELINE INTEGRITY Ensuring our energy supply....... 30 Coatings assessment facility crucial to pipeline infrastructure............. 32 Applying coating in the field....... 34

62

4

70

SMART GRIDS Smart grid, smart city.................. 62

TRANSFORMERS & SUBSTATIONS New lease of life.......................... 70

Bringing about the power of choice............................................ 68

Electricity infrastructure to underpin regional growth........... 73

36

HDD Easing the pressure on the peninsula.................................... ..36 Melbourne water retailer South East Water is at the helm of one of the largest pressure sewerage constructions in Australian history, bringing its awardwinning innovative sewerage control and monitoring systems to residents of the Mornington Peninsula.

HDD and the NBN: opportunities for collaboration.................................. 42

76 76 72 Utility magazine’s experts answer your questions............................. 76

November 2014

ISSUE 4

50

46

NBN Change and transition: an eye on the NBN project........................... 46 The National Broadband Network is currently undergoing its transition between rollout models. The past few months have been a time of decisions, change, trials and reviews for the project, while in the background the network continues to take shape.

COMMUNICATIONS 2G network closes........................ 48

ASSET MANAGEMENT Strategic asset management with ISO 55001..................................... 50 Pipe, culvert and tunnel maintenance: replace or renew?........................ 54 DESALINATION Desalination plants: the insurance policy we have to have................ 56

59

WATER Unified call for better urban water regulation..................................... 59 The Water Services Association of Australia recently released its flagship report for 2014, ‘Improving economic regulation of urban water’. This report supported recent calls from customers, the water industry and the private sector for better economic regulation of the urban water sector.

In each issue Editor’s welcome...................................................1 A word from the ENA........................................... 6

79

News briefs............................................................ 8 Advertisers’ index...............................................80

COMPANY NEWS Inspecting gadgets for managing assets............................................ 79

Editorial schedule...............................................80 5

A WORD FROM THE ENA JOHN BRADLEY CHIEF EXECUTIVE OFFICER – ENERGY NETWORKS ASSOCIATION

A

6

t some point in the last five years, Australia’s energy policy debate started to feel more like an episode of Jerry Springer than the 7.30 Report.

From carbon policy to renewables, from claims of gold-plating to utility death spirals, energy policy debate in Australia is too divisive to advance the long-term interests of consumers. After all, the electricity system represents both one of our most important economic inputs and our society’s largest machine, providing an essential service in real time to almost all businesses and households.

Little wonder then, in this shouty environment, that the recent release of one of the world’s most comprehensive assessments of the energy future was largely ignored by the mainstream media. Australia’s $100 million, taxpayer-funded Smart Grid, Smart City report analysed smart grid energy technology, consumer behaviour and pricing reforms over four years, involving 17,000 electricity customers.

Given the focus on electricity bills, you might have expected wider coverage of the report’s findings – that a smart grid could lower the average bill by $150 per year. Surely, it was major news that without reforms to current electricity pricing structures some electricity customers could end up subsidising others by $420 per year? Well, no.

The Report finds Australia’s current tariff structures and electricity meters may doom consumers to pay $10 billion more than necessary by encouraging over-investment in one part of the system – onsite generation (like solar panels) and storage. This is because today’s volume-based tariffs result in some users paying less than the cost of their network

service and so others pay more.

Without time-varying tariffs, unfair outcomes also arise if customers add disproportionately to the peak, through large air-conditioning use or in future use of electric vehicles and battery storage.

There was a strong reaction from solar advocates to the Report’s analysis, despite the fact the analysis shows Australian solar panel capacity would increase massively even if fairer tariffs are put in place to protect other users. In fact the study found that the installed capacity of solar panels would increase by 17,000 megawatts in 20 years to be six times the current installed capacity.

This outcome represents 90 per cent of the solar increase which occurs without reform but it avoids consumers paying $10 billion more than necessary during the period.

While that seems a good policy outcome, cost-reflective pricing is shouted down as ‘anti-solar’ in today’s polarised energy debate.

In another Jerry Springer moment, some energy commentators suggested last year the easy way to lower costs to consumers would be to write down network investments due to declining energy demand. In that episode, no evidence or analysis of the flow-on consequences for electricity customers was provided.

The first detailed economic analysis has been undertaken by the Energy Networks Association and shows that calls for write downs are a chimera for customers. The report WrittenDown Value? – Assessing Proposals for Electricity Network Asset Write Downs shows that far from reducing customer prices, asset write downs could see consumers pay over $320 million more per year.

Australia could ruin its hard-won reputation with investors without

delivering lower electricity bill outcomes for customers. The research paper conservatively estimates that electricity network charges could increase by up to 7 per cent based on current network investments. In addition, financing costs for future network investment could be $1.8 billion higher over the next decade.

Even in extreme write-down scenarios equivalent to writing off 20 per cent of network assets, the increased cost of financing outweighs any savings to consumers intended from a lower asset base and lower depreciation charges. This conservative analysis does not factor in the potential that investors may require a sovereign risk premium if the current regulatory regime is retrospectively abandoned.

Regulatory write-downs provide more threats than opportunities to consumers, by reversing the other downward pressures on network cost of capital and network prices.

By doing so, write-downs are likely to increase, not lower, any risk of a utility ‘death-spiral’ leaving both consumers and investors worse off.

To provide efficient, reliable outcomes for consumers, Australia’s changing energy system needs clear economic signals and neutral market frameworks more than any time in its history. This means an evidence-based policy and regulatory framework which avoids picking winners or plumping for simplistic solutions.

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AARON WHITE JOINS THE TEAM AT UTILITY

gas

Aaron White is the latest team member to join Utility magazine, taking on the role of Marketing Consultant.

Aaron has more than twenty years’ experience in the Utility industry, where he specialised in working closely with his clients to tailor a solution to their needs.

Utility Publisher and Editor Chris Bland said Aaron will play an integral role in the growth of the magazine. “Aaron is an exciting edition to the Utility team.

His extensive experience in utilities means he is perfectly placed to assist our clients and deliver the right solution for them.”

8

NEW APPOINTMENT AT VERMEER Vermeer Australia has appointed Simon Coles to the position of Director of Operations, Mining and Energy. His new role encompasses operational support of all Vermeer Australia’s surface mining, oil and gas field project work, and a range of equipment including track trenchers, surface miners, mud systems and mud pumps, and large-scale drilling systems.

In the 25 years he has spent with Vermeer, Simon has gained very broad and exceptional technical and commercial experience, and as such was a logical choice for the role. He has comprehensive experience in business operations and the unique liaison between Vermeer Australia, their customers, and Vermeer Corporation that large-scale project work necessitates.

Peter Pullan, Managing Director of Vermeer Australia, said “We recognise that the continued expansion of our operations in the Mining and Energy sectors brings greater challenges in terms of service delivery and governance requirements. There is no other person in or outside our organisation who could more capably direct the expansion of this most important area of our business. It will require strategic planning based on an incisive knowledge of equipment, logistics, manpower, and risk management. This plays to Simon’s strengths.”

CSIRO REPORTS CSG EMISSIONS FINDINGS

NEW GAS PIPELINE FOR QLD

CSIRO has released a report on greenhouse gas emissions from Australian CSG production wells.

The report, Field Measurements of Fugitive Emissions from Equipment and Well Casings in Australian Coal Seam Gas Production Facilities, involved CSIRO scientists measuring fugitive methane emissions from a number of production wells in QLD and NSW. Key findings included the fact that of the 43 wells examined, only three showed no emissions; and while the remainder had some level of emission, generally the emission rates were very low, especially when compared to the volume of gas produced from the wells.

The report states: “As a rule of thumb, if fugitive emissions are below 1-2 per cent, natural gas has lower greenhouse gas emissions compared with coal (based on current technologies). Above

The Queensland Government has announced an $11 million investment in a new gas pipeline to supply householders and industry in the Bundaberg region.

QLD Premier Campbell Newman said the 24.7km Bundaberg Gas Pipeline could create around 100 new full-time jobs and 600 indirect jobs by attracting new industry and development to the region.

“This pipeline will encourage new businesses and industries to locate in the Bundaberg region and allow existing businesses to expand.”

The new gas pipeline will begin at the existing Wide Bay pipeline, west of Bundaberg, (Kensington Gate Station) and extend through to the Port of Bundaberg.

about 4 per cent fugitive emissions, the greenhouse benefits are lost. The average emissions rate for this study equated to approximately 0.02 per cent of the total gas produced.

“Although this is a very low figure, it’s important to note that this is only a pilot study, encompassing less than 1 per cent of the existing CSG wells in Australia. Another important consideration is that emissions were only measured from well pads, so cannot give a full representation of the whole-of-life emissions.

“This work will significantly add to the knowledge base about emissions in Australia and help to better characterise Australia’s CSG emission profile. To fully characterise emissions, however, a larger sample size would be required and measurements would need to be made over an extended period.”

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SMP PUMP AND PIPELINE CONTRACT AWARDED A large contract has been awarded for major components of the $120 million Sunraysia Modernisation Project (SMP), the biggest irrigation upgrade in the history of the Sunraysia district.

GOLD JV, a joint venture between Guidera O’Connor and Leed Engineering and Construction, has been appointed to design and build new pipelines, decommission irrigation channels at Merbein and Red Cliffs and replace the existing 1920s pumps at Merbein Pumping Station.

An enhancement to the project is also being made, which will allow the entire Merbein Irrigation District to have access to irrigation water 365-days a year.

Detailed design by the contractor is now underway and is due to be finished by the end of the year.

Site work is expected to begin early in 2015, with the entire SMP to be finished by June 2016.

For the latest UTILITY NEWS visit www.utilitymagazine.com.au

STUDY TO REVOLUTIONISE URBAN WATER MANAGEMENT A ground-breaking study into future scenarios for urban water management has been launched at a Committee for Sydney 2054 workshop. The results will help cities in Australia and across the world address key pressures that pose challenges to safe, secure and sustainable supply of water.

The Future of Urban Water: Scenarios for Urban Water Utilities in 2040 report highlights over 100 social, economic, environmental, political, and technology trends, outlining four key scenarios which will guide the long term planning of Sydney Water.

Each scenario sees the industry move in a new direction with various opportunities for customers, infrastructure, and governance. Some incorporate modest changes, such as the introduction of products and services using smart-water metering, real time monitoring, smart phone apps, and related technology. Others suggest more extensive changes, including self-management of water supply by local communities, a greater role for private industry in building and operating site-specific water systems, and differentiated customer billing.

Arup’s Australasia Water Leader, Daniel Lambert, said the joint planning study was one of the most imaginative

sewer

10

and forward-looking of its type undertaken by any water utility, and would help Australian water utilities to plan for and effect change on a local and global scale.

“Australia is the driest populated continent, and due to the challenges of our climate Sydney Water has successfully undertaken water efficiency and conservation programs to manage demand. As our largest city and one facing unique challenges however, it is imperative that Sydney continues to remain at the forefront of innovative thinking as to what the future of water supply may look like. This thinking should consider demand, operating models and adoption of technological innovation to ensure value is able to be realised by the community.

“Jointly with Sydney Water, Arup has been able to consider and assess scenarios that could transform the operating model for water utilities.

Arup believes our population will be best served if water authorities migrate towards a hybrid model which incorporates greater decentralisation and autonomous management of water supply, greater participation of additional service providers and smarter management of the water grid.”

NBN

YARRA VALLEY WATER COMMITS TO NEW INFRASTRUCTURE

NBN UPDATES FTTB AND INFRASTRUCTURE COMPETITION PLANS

Yarra Valley Water (VIC) has announced major new infrastructure to be built in Melbourne’s north.

The utility has committed $14.7 million to install water and sewer services along a major road in Craigieburn, and $20 million towards upgrading the Wallan Sewage Treatment Plant.

The Craigieburn works encompass a number of projects, including the construction of a branch sewer, a potable water main and a recycled water main in preparation for new developments in the area. The construction, which also includes 12km of pipe work, commenced earlier this year and is expected to be completed by mid-2015.

Meanwhile, the Wallan STP upgrade is due to commence in 2015, with completion expected in 2016. The works will also allow the plant to supply Class A recycled water to customers in the Wallara Waters and Mandalay area.

NBN Co has pushed back the expected delivery of its FTTB (fibre-to-the-building or fibre-to-the-basement) product until early 2015 in order to focus on its FTTP (fibre-to-the-premises) services in areas where rival provider TPG poses a competitive threat.

In a May hearing with the Senate Select Committee on the National Broadband Network, NBN Co CEO Bill Morrow and COO Greg Adcock confirmed that NBN Co intended to begin the race to connect apartment buildings by using fibre-to-thepremises (FTTP) technology until their own FTTB product is ready.

The amended FTTB release date is listed on the NBN’s Integrated Product Roadmap and states that all processes and systems for the initial FTTB services product will be released in the first quarter of 2015.

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GRID INTEGRATION ‘STOCKTAKE’ PROJECT

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A new collaboration between the Australian Renewable Energy Agency (ARENA) and the Energy Networks Association (ENA) is set to provide a one-stop-shop of up-to-date renewable energy grid integration projects and findings.

ARENA CEO Ivor Frischknecht said the new partnership would address an existing information gap and build on important work ARENA had already undertaken.

“ARENA has released a stocktake of 176 renewable energy grid integration projects from across Australia, worth more than $4 billion, including 60 key projects from overseas,” Mr Frischknecht said.

“Integrating renewables into the grid is one of the major challenges facing the energy sector and this stocktake is a vital step in helping advance this work.

“This stocktake of relevant studies, trials and demonstration projects will provide the basis for further work and get the most out of existing information and investment.”

ENA CEO John Bradley said the ENA would provide updates in late 2014 and 2015, to ensure there is a continuing resource of up-to-date, publicly available information for the whole sector to draw on.

“Housing the latest research, studies, findings and projects in one place will make it easier for the sector to address challenges and capitalise on opportunities involved in integrating renewables into the network,” Mr Bradley said.

“The rapid increase in distributed renewable energy is upending the traditional supply system and driving an increasing need to revisit the energy network, which was originally designed for one-way delivery.

“There are real and tangible benefits and opportunites to be gained from integrating renewables into the network, and network businesses have already facilitated the installation of more than 1.2 million roof top solar panels in Australia.

“The ENA and ARENA recognise the valuable role this stocktake will play in helping the sector to make this transition, by providing a consolidated base for information-sharing and collaboration.”

$570M POWER STATION FOR PILBARA (WA)

INNOVATIVE FAULT NOTIFICATION SYSTEM WINS ACCOLADES

Canadian-based energy company TransAlta Corporation (Australia) has signed an agreement with Horizon Power to fund, design, build and operate a 150MW combined cycle gas power station at South Hedland to meet future Pilbara electricity demand.

Fortescue Metals Group and Horizon Power are foundation customers of the new $570million power station, to be built in South Hedland’s Boodarie Industrial Estate.

WA Premier and State Development Minister Colin Barnett said the new power station would help to ensure long-term energy security for residents and businesses in the growing Pilbara region, with TransAlta’s presence also introducing much-needed competition into the market.

“This state-of-the-art energy infrastructure will be built using private, rather than State funds, demonstrating there are still innovative ways to deliver important infrastructure in times of financial constraint,” Mr Barnett said.

First power is expected to be delivered in 2016 with full commissioning expected in 2017. At a later date, the plant may also be expanded to supply power to other customers and commercial users.

A world-first CitiPower and Powercor project that identifies unplanned outages before customers call in the fault has won the Innovation category award at the prestigious Australian Business Awards 2014.

The Meter Outage Notification (MON) system utilises smart meter technology to notify the business of outages by identifying voltage variations in a customer’s system and sending a ‘last gasp’ signal back to the business when the power is about to be lost. This assists in reducing the duration of power outages and saves the business money through greater efficiency.

MON came into service in May 2013 and has saved CitiPower and Powercor about $7 million in the year since.

MON project manager, Luke Skinner, said the ABA100 Innovation category award was tremendous recognition of the work done by his project team.

“The world-first MON project benefits both our business and our customers by being able to detect the exact time of the outage, pinpoint its exact location, identify the exact time of restoration and reduce the need for field crews to undertake outage investigations.”

TRANSEND AND AURORA’S DISTRIBUTION BUSINESSES MERGE TasNetworks, the new company formed through the merger of Transend and Aurora’s distribution business, is now operating.

TasNetworks CEO Lance Balcombe stated that this is an historic day for Tasmania’s electricity supply industry.

“The commencement of TasNetworks is a significant change to the Tasmanian electricity supply industry and the conclusion of a significant program of work. I would like to thank employees of both Aurora and Transend for their support getting us through that process,” Mr Balcombe said.

“TasNetworks will strive to reduce power bills for all Tasmanians. We will focus on providing outstanding customer service and drive efficiencies to reduce costs, delivering savings for the people of Tasmania.”

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GAS PIPELINES

PACIFIC LNG PIPELINE STORY The recently completed 530 km APLNG gas transmission pipeline has occupied much of the Australian gas pipeline industry for several years. We take a look at each stage in the construction of this world-leading gas pipeline project.

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GAS PIPELINES

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T

he Australia Pacific Liquefied Natural Gas (APLNG) project is one of three mega coal seam gas (CSG) to LNG projects under construction in Australia. The project is on track to have the first LNG train started up in mid-2015 and the second LNG train remains on schedule for startup in late 2015.

The main export pipeline is now being commissioned, the first gas began flowing from the Condabri Central Gas Processing Facility in June, and on Curtis Island hydrotesting of both LNG storage tanks was successfully completed in August.

Australia Pacific LNG is an incorporated joint venture between Origin, ConocoPhillips and Sinopec.

Origin is responsible for the further development of Australia Pacific LNG gas fields in south central Queensland, and the construction and operation of upstream gas field facilities and the gas transmission pipeline.

ConocoPhillips is responsible for the construction and operation of the downstream multi-train LNG facility and associated infrastructure on Curtis Island, near Gladstone. The LNG plant will be constructed using ConocoPhillips’ Cascade technology, and will have the capacity to produce up to nine million tonnes of LNG per year.

THE GAS PIPELINE PROJECT A key component of the Australia Pacific LNG project is the high pressure

gas transmission pipeline that will transport CSG from the gas fields in the Surat and Bowen Basins of Queensland to the LNG plant on Curtis Island.

The pipeline infrastructure comprises the 530km main export pipeline and 180km of high pressure laterals connecting to Gas Processing Facilities such as Condabri and Reedy Creek.

Australia Pacific LNG Pipeline Project Manager Graeme Hogarth described the project as world-class.

“This is the one of the largest pipeline projects that’s been undertaken in Australia,” Graeme said. “The pipeline consists of over 700km of high pressure gas pipeline of which 360km is 42inch – very large, high pressure pipeline.”

pipeline and has constructed 40km of high density polyethylene pipeline for water transfer.

GETTING OFF TO A GREAT START Getting the basics right at the start of the project played a key role in managing technical complexities, resolving construction and timeframe challenges, and creating a unified “one team” culture of cooperation and support across multiple sites, teams and companies.

The use of an Engineering, Procurement and Construction (EPC) contract model enabled Origin and MCJV to share ideas and expertise in design, selection of materials and equipment, and resolve potential issues with construction techniques.

While use of EPC is not unique, Mr Hogarth said the decision to also establish an integrated leadership team (ILT) with representatives from Origin,

MCJV and Nacap proved strategically important.

“The integrated leadership team made joint project-related decisions and guided project delivery, creating a clear, shared understanding of issues from each perspective,” Mr Hogarth said.

“ILT members remained objective during discussions, and developed and endorsed common project values to create a sense of cohesion and shared purpose.

“This integrated approach, developed from the outset, was fundamental for developing ‘teamwork’ and a positive workplace culture across the pipeline project.”

These shared values and goals were brought to life across the project through a range of team development activities.

For example, the ‘Game On’ team engagement program proved highly effective in building performance in

GAS PIPELINES

“Just the sheer size of the project in its own right is a challenge, and we have successfully delivered construction of this world class project as planned, and on time.”

The pipelines project resources comprised Origin and its two main pipeline contractors, MCJV (a 50/50 joint venture between McConnell Dowell Constructors and Consolidated Contracting Company Australia) and Nacap, with a peak workforce of approximately 1,600 people.

MCJV was contracted to engineer, procure, construct (EPC) and precommission 510km of the large diameter pipelines on the project. The MCJV engineering scope extended to the whole of the gas pipeline system.

Origin procured all the line pipe as well as the large valves and fittings.

Nacap is constructing the infield small diameter gas pipelines that connect the various gas plants to the main export

17

GAS PIPELINES

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relation to the key project elements of Safety, Quality, Environment and Progress.

GAME ON: SAFETY, QUALITY, ENVIRONMENT AND PROGRESS On the pipeline project, safety was recognised as the most important one of four critical elements for project delivery – alongside quality, environment and progress.

As the project moved from planning to critical construction stage, a common approach to safety and progress activity was adopted in order to encourage collaboration and best-for-project outcomes.

Using the common elements of existing safety programs from the different project partners, the pipeline project management developed the ‘Game On’ safety program to ensure a simple, consistent message to help engage work teams and supervisors in safe project delivery.

The Game On program was based on the successful Australia Pacific LNG safety program ‘Every Day is Game Day’, led by rugby league legend Darren Lockyer in his role as safety ambassador.

Game On reinforced existing contractor safety activities, promoted engagement with frontline crews on ways to improve overall project performance, and provided an opportunity to involve the entire workforce.

Pipeline Project Deputy Director John Swanson said Game On was designed to deliver three basic elements: • combining common safety themes and messages from all three project partner companies • introducing key performance indicators (KPIs) for safety, quality, environment and progress that extended all the way through to front line supervisors and work teams • providing specialist ‘coaches’ to support supervisors in communicating with work teams about safety.

“The idea of Game On is really just a delivery method for these three

THE LAST SHIPMENT OF PIPE IS UNLOADED AT GLADSTONE PORT.

concepts, and it proved to be extremely effective,” Mr Swanson said.

Thanks to Game On and to every person who worked on the project,

by July 31 2014 the pipeline project had reduced its rolling 12 month Total Recordable Injury Frequency Rate to an industry leading 2.42.

WORKING WITH LANDHOLDERS AND LOCAL COMMUNITIES Cultivating effective relations with landholders and local communities was another critical aspect of the pipeline project’s success.

A team of pipeline landholder liaison officers was established to maintain relations with local landowners, community groups, and local government to provide information and listen to feedback.

These relations and communication lines were essential for managing discussion about issues such as impacts on roads, road use permits, placement of camps, land access negotiations, cultural heritage and environmental permits, and responding to feedback and complaints.

Mr Hogarth said the early stages of a pipeline project focus on the critical aspects of gaining necessary approvals, permits and land access agreements.

“The first three years of the pipeline project were all about the approvals and the engineering; about defining the route of the pipeline, and then designing the pipeline – taking into account design safety as well.”

“Gaining necessary approvals

involves securing access to land, cultural heritage clearances, environmental permits, working with stakeholders, working with landholders, working with council and working with Government.”

During the pipeline project a total of 260 landholder land access agreements were negotiated, along with numerous permits and approvals at Federal, State and local government level.

LOGISTICS AND PROCUREMENT In parallel with planning activities, logistics and procurement functions shifted into high gear in order to secure necessary equipment and materials, particularly items with long lead times, varying from 42,000 sections of steel pipe, to specialist pipelining equipment such as side boom cranes for laying in the pipe.

Manufacturing and transporting the steel pipe for Australia Pacific LNG’s pipeline was a major logistical challenge undertaken over an 18 month period, involving project teams in three countries.

It involved a total of 42,000 steel pipes, most at 18 metres in length and half at 42 inches in diameter, and weighing around 270,000 tonnes, delivered via 45 ship movements, around 250,000 crane lifts and 330 train trips. It required close coordination with international manufacturers and shipping agencies, port operations, stevedores, Government departments, rail and road transport operators and construction contractors.

GAS PIPELINES

The pipe sections were manufactured in Japan by Nippon Steel for Metal One, coated in Malaysia by WASCO, transported by vessels under charter from Thoresen and Westlink, and unloaded in Australia by Patrick Stevedoring.

Port operations were managed by Gladstone Ports Corporation, with quarantine and Bio-Security services provided by the Federal Department of Agriculture, Fisheries and Forestry.

Consultation with local communities and regional councils identified opportunities to use rail transport to manage impacts of heavy freight transport on local roads, and minimise potential traffic issues.

Pipes were transported from Gladstone via rail by Aurizon Railroad to a central laydown area at Callide, near Biloela and by road to work sites for construction.

The decision to use rail to transport

KILOMETRE-LONG STRINGS OF PIPE ARE LAID IN THE OPEN TRENCH USING SPECIALISED SIDE-BOOM CRANES.

the pipe sections removed around 10,000 heavy truck movements from Gladstone and the surrounding traffic corridor.

WORKFORCE MANAGEMENT At its peak the Australia Pacific LNG

pipeline project workforce reached approximately 1,600 employees and contractors.

Due to the remote location of the project, and the fact that work locations constantly moved as work on the pipeline progressed, workforce

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GAS PIPELINES

TRIMMING THE FINAL SECTION OF PIPE NEAR GLADSTONE.

20

accommodation and transport for work teams was a major challenge for the project. Temporary accommodation facilities or camps were established.

Camp locations were planned so that drive times to and from the right of way were minimised. MCJV constructed four temporary camps at various locations, NACAP constructed three camps, and two camps managed by commercial operators were also used.

Purpose-built, 18-seater four-wheel drive (4WD) buses were used to transport crews to work sites each day.

A combination of buses and commercial/charter aircrafts were used to transport personnel to Brisbane and other destinations on cycle break.

A $20 million upgrade to the Miles Airport funded by Origin on behalf of Australia Pacific LNG and completed in October 2013 helped to further reduce use of private vehicles using local roads for workers commuting.

WORKING ON THE PIPELINE GANG Once permits and land access permissions had been obtained the first steps in laying the pipeline were cultural heritage and environmental surveys, followed by pegging out the easement.

A clear and grade crew then removes vegetation, bulldozers and graders level out the right of way to create a working platform for work crews, and topsoil is stockpiled for rehabilitation activities.

Semi-trailers deliver and place pipe sections in preparation for pipe bending and the ‘firing line’ – the automatic welding line which involved over 80 people completing up to 145 welds per day, and covering a linear distance of up to three kilometres.

Automatic ultrasonic and radiographic testing ensure the integrity of each weld, followed by field joint coating where joints that have been welded are sandblasted and epoxy coated.

The ditching crew then digs the trench, followed closely by the lowering-in crew, which lays the pipe section in the open trench in continuous sections of up to 1,200 metres.

Highly skilled specialist welding crews join the long sections, completing these final welds manually in the trench. The final ‘golden weld’ – creating single continuous pipeline stretching from Curtis Island to the gas fields – was completed by specialist welders Simon Patten and Jim Cresham on 30 April 2014.

Once the pipe is lowered in, it is backfilled and compacted, the topsoil is reinstated and seeded with locally appropriate pasture grasses.

CROSSING THE NARROWS One of the most technically and environmentally challenging aspects of the Australia Pacific LNG pipeline project was crossing the Narrows, a channel separating Curtis Island from the mainland featuring creek, marshland and marine sections with high environmental value.

Australia Pacific LNG and Queensland Gas Company adopted a collaborative approach to the task of installing each respective company’s pipeline across The Narrows.

The two companies agreed to locate their pipelines in the same trench across the Narrows, and install the pipelines simultaneously to minimise environmental impacts. The collaborative approach resulted in the world’s first dual CSG to LNG transmission pipeline project, where MCJV successfully installed both pipes in parallel.

The Narrows crossing pipeline involved horizontal directional drilling to install the dual pipelines, construction of a temporary coffer dam to traverse the marshland section, and winching the completed pipelines through the coffer dam, and then across the open channel.

Once the two pipelines had been constructed, welded and tested, they were moved into position at the entrance to the cofferdam.

The Narrows channel was closed to shipping and a cable was towed from Curtis Island to the mainland and attached to the pipe-header.

A 450 tonne winch on Curtis Island was used to pull the twin pipe strings through the flooded marshland cofferdam and then across the channel to Curtis Island.

Conventional trench and bury techniques were used to install the APLNG pipeline from the Curtis Island winch pad to the APLNG receiver station, which will deliver the gas to the newlyconstructed LNG processing plant.

TOWARDS FIRST LNG DELIVERIES Construction of the main high pressure gas transmission pipeline was safely and successfully completed in July, and the pipeline is now being progressively placed into service.

At the same time, hydrotesting of LNG tanks on Curtis Island has been completed, and gas from the recently commissioned Condabri Central gas processing facility is now being delivered into the gas network.

These milestones play a critical role in the delivery of first LNG in mid-2015, with gas from Condabri Central delivered to Curtis Island through the pipeline system where it will be liquefied and shipped to Asia.

For more information visit www.aplng.com.au.

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GAS PIPELINES

GAS PIPELINES:

WHERE TO NOW? A conversation with Jim McDonald

Jim McDonald has been one of the key figures in the development of the Australian gas pipeline industry as we now know it. Founding Managing Director of the Australian Pipeline Trust, founding Chairman of the Energy Pipelines Cooperative Research Centre and three-time APIA President, Jim has now turned his attention to a new technology which has the potential to revolutionise the way gas powers heavy duty trucks and machinery and is delivered to remote industrial locations.

J

22

im’s career in pipelines began in 1971, when he joined Esso Australia. After 15 years, Jim made the move to NT Gas, where he took up the CEO post. This led to roles within AGL, eventually managing the company’s pipeline division – which went on to become the Australian Pipeline Trust (now APA Group), of which he was the first CEO. Retiring from APA in 2005, Jim went on to take up Non-Executive Directorships with a number of ASXlisted companies, all with a pipeline industry connection, and was also the foundation Chairman of the Energy Pipelines Cooperative Research Centre (EPCRC).

A pipeline professional of more than four decades, Jim has much to say when asked on his thoughts for the future of the pipeline industry, particularly as it moves from a phase of heady construction and into one of operation and maintenance.

“There are three major planks supporting a future pipeline industry,” said Jim. “Firstly, pipeline operations and maintenance is itself now a major industry, given the sheer size of the pipeline network, and, as capacity is absorbed, looping, compression and eventually refurbishment or replacement of ageing pipelines will add to the complexity of the work.

“Secondly, the continual addition of replacement production capacity and gathering systems for the coal seam methane LNG projects will see a continuum of work in Queensland for decades to come.

“Third, and most importantly, when the politicians wake up to the emerging energy security risk that our reliance on imported liquid fuel entails, when they understand that technology such as high density compressed natural gas (HDCNG) enables us to displace the billions of litres of diesel we presently import each year with our own natural

JIM MCDONALD.

gas, and when the public realises the nonsense in exporting energy as gas for $10 per GJ whist we import energy as refined product for $25 per GJ, at a cost to our balance of trade in excess of $20 billion a year, I am confident that we will turn our attention to the vast reserves of gas, including shale gas, that undoubtedly exist in this country, and ensure that Australia’s natural gas is available for our own industries.”

AN EVOLVING INDUSTRY It is these beliefs that have led Jim into a new phase of his career. He resigned all of his directorships over the past 12 months to focus on a job that has reignited his interest in pipelines and natural gas: as Chairman of the IntelliGas Group of companies (in which he also has a modest investment).

The founders of the business are Paul Whiteman and Derek Fekete, who were both with ASX-listed power

TRUCK AT CRESTMEAD RE-FUELLING STATION.

technology business EDL since it was founded by Paul and Walter Pahor in 1989. IntelliGas also has a fourth investor, Ken Hall, who built Kalgoorlie Power Systems, a remote power generation business, which he sold to Pacific Energy Limited, an ASX-listed power specialist.

“IntelliGas is a natural gas technology business which has world patents pending for components and processes which enable HDCNG™ to be used as fuel in heavy duty vehicles such as highway trucks, locomotives and mining machinery. HDCNG is natural gas at pressures in excess of 350barg (5076psig), at which pressures it has twice the energy density of conventional CNG. “The IntelliGas systems enable natural gas to be stored, dispensed and used as fuel while eliminating the problems that normally result from the heat of compression in conventional CNG systems. HDCNG enables the on-board fuel storage tanks to be filled with cool gas to name plate capacity every time, and a HDCNG equipped heavy duty B Double road train can

travel in excess of 1,100km between fuel stops.

“It is very exciting technology with worldwide application.”

According to Jim, the IntelliGas system is practically commercial-ready, and the team has commissioned the world’s first HDCNG re-fuelling station at Crestmead in Brisbane. However, a major obstacle has arisen to slow the application of the technology to heavy duty truck fleets with the withdrawal from sale of the Westport GX engine. The engine, which is a 500+HP diesel cycle engine, is ideally suited to Australian conditions. Its withdrawal means that an engine suited to Australian heavy duty conditions is presently not available.

This will be resolved, but it may be a year or so before a suitable engine is on the market.

“At IntelliGas we are working with engine technology and truck manufacturers as they develop their own gas engines,” said Jim. “We have a prototype engine which develops almost 600HP running in one of our three Western Star trucks. We are also

working with fleet owners of trucks up to around 400HP where spark ignition and dual fuel gas engines are now becoming available.”

According to Jim the key target market for HDCNG is heavy duty interstate highway fleets. “Other than re-fuelling systems which will be installed ‘behind the gate’ in fleet owners premises, we plan that this fleet will be re-fuelled at strategic locations on national highways, where the highway and transmission pipelines are adjacent. Examples of such sites on the Hume Highway are Barnawartha, just west of Wodonga, and Marulan, just north east of Goulburn. Rest assured there are sufficient points on the national highway system where pipelines either cross the highway or are adjacent to it to enable dedicated prime movers to re-fuel in sync with driver rest periods and vehicle range on HDCNG. “The heavy duty highway fleet in eastern Australia consumes in excess of 120 PJ of energy each year, and individual trucks consume up to

GAS PIPELINES

JIM WITH JAMES WHITEMAN AND AN INTELLIGAS

23

GAS PIPELINES

$250,000 in imported diesel fuel per annum: now that is an untapped market for natural gas,” Jim said.

JIM AND BRYAN FULWOOD INSPECT AN INTELLIGAS FUEL PACK BEING FITTED TO A MILK TANKER TRAILER.

24

REFLECTIONS ON A PIPELINE CAREER Jim’s earliest pipeline memory is from 1964, when he and his father drove along the Princes Highway to visit a spot just east of Traralgon, where Snam Progetti had cut the highway to install the Longford-Dandenong natural gas pipeline.

“I had no idea then that pipelines would play such an important role in my life,” recalled Jim. “That didn’t happen until 1971 when I joined Esso Australia, and went on to spend 15 contented years in oil and gas production in Bass Strait. Over that time we went from two platforms to thirteen, and from zero oil production to in excess of 500,000 barrels a day. They were heady and exciting times.”

A major turning point in Jim’s career came in 1986 when, faced with a change of jobs within Esso, he chose to leave and accept the position of CEO of NT Gas, a decision that began to define his career and marked the commencement of a steep learning curve.

Not long after this move, major change lay ahead for the gas and pipeline industries. In the early 1990s, Victorian Premier Jeff Kennett signed off on the privatisation of the state Gas and Fuel Corporation, which, according to Jim, sealed the fate of government ownership of gas pipelines and networks.

“A domino effect over the next several years saw all the major pipelines in private ownership, and the industry has never looked back,” said Jim. “Privatisation also led to a major event in my career in 1994; the acquisition by AGL, Petronas and Nova of the Moomba to Sydney Pipeline and the creation of the East Australian Pipeline Company. This was the nucleus of the Pipeline Division within AGL, which in turn was the nucleus of the Australian Pipeline Trust, the subject of an IPO by AGL just six years later, listing in March 2000. I was fortunate to be the General Manager of AGL’s Pipeline Division in those growth years, and when this was spun into the Australian Pipeline Trust, now APA Group, I was offered the opportunity to be

THE VIRTUAL PIPELINE In addition to the road fleet market, IntelliGas has also developed the concept of a ‘virtual pipeline’ using HDCNG technology.

The virtual pipeline involves the transport of approximately 1,200 GJ on a B Triple Road Train – a significantly greater quantity than any conventional CNG delivery system can carry, other than a pipeline, and has enormous potential to be used to displace diesel

the company’s first Chief Executive Officer, and later Managing Director.

When asked to recall his favourite memory throughout his pipeline career, Jim was quick to name the Ballera to Mt Isa Pipeline project.

“On this project, we had a price to satisfy and a first gas date just 14 months away, with significant liquidated damages per diem for failure to deliver gas. The week we mobilised, the entire route suffered 100 year floods from cyclonic activity in the Gulf. Cooper’s Creek was 80 km wide within weeks as the floodwaters moved downstream; and Mt Isa itself was completely isolated with roads in all directions seriously damaged. Our pipe stock yard in western Queensland was under a metre or so of water, we had construction equipment stranded at Moomba, and were in serious trouble.

“We had planned to build from Moomba to Mt Isa, but were forced to turn the project upside down and regroup to build from north to south. I will not bore you with the details; suffice to say it was a daunting task with our project planning in total disarray. It was as bad as it gets in project work.

“Thanks to great work by Jeff Sheppard and Grant Bowley who were with our contractor McConnell Dowell at the time, John Bidwell who was my Project Manager, and some very serious and at times heated discussions about how a risk/reward sharing alliance project structure was supposed to work, we made it on time and on budget. From memory we set a record for construction speed, averaging something close to 8 km per day, even achieving 17 km on one day. At one time we had over 150 km of trench opened with explosives and rock saws through the hard rock country south of Mt Isa, and the welding crews almost caught up with the trenchers.

“It really was a great job.”

at remote mine sites and towns a pipeline cannot economically reach.

Said Jim, “Of course, the first choice should always be a pipeline, but the capital for a pipeline has to be recovered over its contract life, and often this is not possible. The assets that comprise a virtual pipeline are fungible and therefore the capital can be recovered over the life of two or more contracts, or the component parts recovered and re-used in other projects. This option does not exist for a buried and welded pipeline.

“Virtual pipelines are therefore a viable option when pipeline economics do not work. As such, they will still have a positive impact on pipelines as the gas for the virtual pipeline will always be drawn from an existing

EPCRC. First, the team was successful in getting itself established due to the vision, dedication and sheer hard work of a number of members of the APIA Research and Standards committee. There is not space to name all involved; but I will give special mention to Leigh Fletcher who led the team. It would not have succeeded without his work.

“The second highlight was the appointment of Valerie Linton as CEO. I could not have wished for a better qualified and experienced person to run it. As a result, notwithstanding a bit of early wheel spin, the CRC programs were established, some issues with the university research centres were sorted, the researchers got down to their work, and we achieved a most satisfactory report from the Government at our first review.”

As Jim noted, the purpose of the EPCRC is to extend the life of existing pipelines, to maintain their impeccable safety record, and to enable the building of better, safer pipelines in the future. However, he also noted that the EPCRC cannot rely on Government funding being renewed when the present grant is exhausted in 2019 – particularly in light of recent cuts to the broader CRC program announced in the 2014 Federal Budget.

“The EPCRC has the major task of producing research of such quality, and with immediate commercial benefit from application, that the industry will have no choice but to support it beyond the present funding.

“I have no doubt that it will succeed.”

pipeline: a virtual pipeline is therefore a practical and complementary extension of a pipeline system.

“The presence of a virtual pipeline load on a pipeline, assuming the virtual pipeline load is complementary to the pipeline load factor and storage capacity, will bring further efficiencies to the pipeline. Pipeline owners will be attracted to the technology and will certainly be attracted to having a virtual pipeline take gas supply from their pipelines. They may even want to invest in this natural extension of their business.”

MINING MACHINERY ALSO IN HDCNG SIGHTS IntelliGas is also about to commence proof of concept trials for HDCNG to

GAS PIPELINES

A VOICE FOR THE INDUSTRY Throughout his career in pipelines, Jim has been a key player in growing the Australian Pipeline Industry Association (APIA) into the association it is today – one which commands respect and has political influence.

“I attended my first APIA conference in Adelaide in 1988 from memory and saw the possibility that it could represent the entire industry, not just the construction members.

“Others shared this opinion and we set about strengthening the association. It went from strength to strength, despite our being accused of hijacking it. By the turn of the century the transformation was complete, it was well funded and domiciled in Canberra, and recognised increasingly as a voice for that great fuel, natural gas.

“Through the work of APIA, the Australian pipeline industry has achieved worldwide recognition.”

Another role Jim took on following his retirement from APA was as the foundation Chairman of the Energy Pipelines Cooperative Research Centre Limited (EPCRC), the body established in 2010 to provide focused research and education to support and benefit the energy pipelines industry in Australia.

“I saw my job was to bed it down, get the research programs underway and get the governance in place to enable it to perform and report to the satisfaction of the funding providers, the pipeline industry and the Federal Government.

“There were several highlights from my time with the

fuel mining equipment. While remote power generation is a potential market for natural gas and some sites are ideally suited to virtual pipelines for that purpose alone, the opportunity to displace diesel with HDCNG in mining machinery is immense.

“I can envisage a day when a virtual pipeline has enabled a mine to convert its generators to gas, and then commence conversion of the mining fleet, creating such gas demand that a pipeline becomes feasible,” said Jim. It’s hard not to get excited about the potential for this technology, especially when an expert like Jim can see it invigorating the gas pipeline industry in years to come.

An extended version of this article is available online. Go to www.utilitymagazine.com.au to read the full story.

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LAND ACCESS

T N E M E G A G N E Y T I N U COMM

KEY TO PIPELINE INDUSTRY LEGACY The rapid expansion of the Queensland onshore gas industry in recent years, and the scale of the projects involved, has been staggering. In order for these developments to have a positive legacy in the years to come, effort must be made to adequately inform and engage those affected. The expansion of the onshore gas industry over the past five years is one of the largest industrial developments ever to occur in regional Queensland.

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A PIPELINE EASEMENT AFTER REINSTATEMENT.

LAND ACCESS

JOHN COTTER INSPECTS

by John Cotter, Chairman of the GasFields Commission Queensland

T

hree major coal seam gas to liquefied natural gas projects (APLNG, GLNG and QCLNG) are currently underway and include pipelines connecting the upstream gas fields in the Surat Basin to export terminals in Gladstone.

The scale of these projects and the speed at which they have developed has been nothing short of staggering for all involved, especially for local landholders and communities.

The pipeline industry has had a key role to play in these projects, in particular the pipeline contractors.

These contractors are the people who design and build these energy highways, many of which are hundreds of kilometres long and traverse many individual properties and rural businesses.

Most pipeline contractors recognise that building a pipeline is not just about meeting technical or engineering

challenges; it’s also about people.

They understand that often the biggest and most important challenge is accessing land and dealing openly and respectfully with the landholders and communities along the pipeline easement.

Having travelled up and down these export pipelines dealing with numerous landholders throughout the construction phase, I have learnt a number of valuable lessons that I

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LAND ACCESS

28

believe should be known by all involved in the industry.

GREATER CLARITY ON LAND ACCESS Firstly, I believe more can be done by gas proponents to improve transparency and provide greater clarity to their pipeline contractors on land access responsibilities such as negotiation, operational matters and dealing with disputes.

Such land access matters must be a critical part of the contractual arrangements between the gas proponent and the pipeline builder. A blame game between project owner and contractor is no longer acceptable in this day and age.

A more coordinated and cohesive approach can not only save time and money on these multi-billion dollar pipeline projects, but can also help reduce the risk of negative publicity and the resulting impact on corporate reputations. More importantly, it can reduce the stress and heartache experienced by affected landholders and communities.

DEVELOPING A SOCIAL LICENSE CULTURE Secondly, pipeline proponents, contractors and even their subcontractors must remain fully aware of the importance of community engagement or ‘social license’ to operate.

No matter how big or small one’s role in a project, it is critical that everyone is aware of their impact on neighbouring landholders and communities. This is particularly critical during the intensive construction phase.

The onshore gas industry already demands a strong workplace safety culture from its company and contract employees, and likewise it must demand a strong culture of social license.

Like safety, if social license and community engagement become embedded values or measurable performance indicators for individuals, teams and companies, I believe this will not only enhance corporate reputations, but will also assist project

bottom lines by reducing the delays and costs arising from disputes with landholders and communities.

PIPELINE LEGACY Thirdly, it should be recognised that these pipelines or ‘energy highways’ have ongoing impacts well beyond the construction phase.

Issues such as erosion, subsidence, weed management and operational activities along the pipeline easement need to be handled carefully and respectfully with landholders.

After all, the rehabilitation and ongoing management of these pipeline easements in the years and decades to come represent the lasting legacy of the project.

I have inspected many of the rehabilitated areas across southern and central Queensland and spoken with impacted landholders. Some still have a bitter taste in their mouths over the way they were initially dealt with, while others have reached satisfactory outcomes.

What is clear is that the reputation of the pipeline industry and the onshore gas industry as a whole is very much dependent on taking a whole-of-life project perspective.

Whoever ultimately owns and operates these pipelines has a responsibility to respect and engage with the landholders and communities who, through no fault of their own, are living alongside these pipelines and have to coexist with them for many years to come.

QUEENSLAND LEADING THE ENERGY REVOLUTION Queensland is leading the onshore gas industry revolution in Australia and the pipeline industry in this state will continue to grow and develop these diverse gas reserves.

A major focus for the GasFields Commission is to get out in front of this onshore gas industry expansion and provide landholders, local councils and communities with relevant information and contacts to understand their rights and opportunities.

The GasFields Commission continues to support landholder

JOHN COTTER INSPECTING A PIPELINE ROUTE DURING CONSTRUCTION.

negotiation workshops run by AgForce Queensland. Over the past couple of years more than 70 workshops have occurred, attended by some 2,000 landholders across regional Queensland.

My fellow commissioner, Don Stiller, whose family has negotiated multiple conduct and compensation agreements with resource, pipeline and utility companies, has shared his top negotiating tips as part of the Commission’s broader landholder education push.

There will be ongoing need for a community engagement and education effort, not only for the existing Surat Basin CSG-LNG export projects, but also for the number of other potential onshore gas and pipeline projects currently under consideration in Queensland.

For example, the Bowen Basin to Gladstone pipeline and other potential pipeline projects (intended to service the emerging shale gas industry stretching from Burketown in the northwest to the Cooper Basin in the far southwest), will hopefully heed the lessons of the Surat Basin experience.

In order to continue to operate and grow in Queensland and beyond, the onshore gas industry must work hard to build and maintain its social license and to better explain to all consumers where their energy comes from.

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PIPELINE INTEGRITY

PIPELINE INTEGRITY:

ENSURING OUR ENERGY SUPPLY Australia is increasingly dependent on the gas pipelines that deliver this vital energy source around the nation. The construction of gas pipelines has experienced a boom in the past decade, but equally important is the ongoing maintenance work required to ensure the integrity of this critical infrastructure.

A

s we become increasingly dependent on energy pipelines, the potential impacts of pipeline failure have become increasingly serious. Managing this risk, and ensuring pipelines do not fail, is a major focus for all pipeline operators now and in the coming years.

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MANAGING INTEGRITY The requirements to safely operate and maintain a gas pipeline in Australia are outlined in the pipeline industry’s Standard, AS2885.

AS2885 sets out requirements for the design and construction, welding, operation and maintenance and field pressure testing of gas and liquid petroleum pipelines.

The Standard was developed by Standards Australia with involvement from the Australian pipeline industry, with contributions from pipeline regulators, engineers, constructors, managers and owners.

The Standard is continually evolving, as new technologies enter the market and new discoveries are made regarding the safe management and operation of gas pipelines.

The Standard features an integrity management, or risk management approach, which enables companies to develop their own risk-based integrity management plans applicable to their own operations. It gives them more flexibility in their maintenance programs which can provide cost savings, while maintaining quality.

THE OWNER/OPERATOR PERSPECTIVE APA Group APA Group states that maintaining their assets well is key to ensuring gas transportation and storage services are delivered safely, reliably and cost-efficiently for the long-term. APA has a national maintenance program for all the assets that they maintain and operate to meet technical requirements and ensure good industry practice.

Inline pipeline inspection or ‘intelligent pigging’ is one of the asset integrity management processes that APA uses to inspect and confirm the condition of a pipeline. The intelligent pigs sent through a pipeline can detect metal loss corrosion, stress corrosion cracking and other pipeline defects on both the inside and outside of a pipeline. The process is designed to minimise impact on the flow of gas in a pipeline and is normally conducted at periodic intervals of a few years.

APA uses the world’s best technology including high resolution electromagnetic and ultrasonic pigs that travel in the gas stream. The sensors in these intelligent pigs measure the size and exact location of even minute changes in a pipeline’s condition. Intelligent pigging provides a health check for a pipeline to ensure its ongoing fitness for service as well as meeting legislative and licensing requirements. By keeping detailed diagnostic records and undertaking timely repairs or preventative maintenance, APA can effectively extend the safe useable life of their pipelines.

Dampier Bunbury Pipeline Dampier Bunbury Pipeline (DBP), owners of the pipeline of the same name in Western Australia, outline their commitment to pipeline integrity management in their ‘ZEROHARM’ health, safety and environmental policy.

A cornerstone of the ZEROHARM commitment is protecting the integrity of the pipeline. DBP monitors safety on the pipeline twenty-four hours a day, seven days a week via a dedicated control centre. Frequent helicopter patrols are conducted performing aerial safety assessments which ensure DBP is able to monitor the pipeline corridor and any works or activities happening in its vicinity.

The surface is protected from corrosion by a coating material and an impressed current system.

The pipeline is cleaned and inspected internally by a process known as ‘pigging’ approximately every ten years. This involves inserting a pipeline internal gauge ‘pig’ which is propelled through the line by the gas pressure while it scrubs the sides of the pipeline.

It is followed by a high-tech tool which measures the thickness of the steel pipe wall electronically.

APLNG APLNG has developed its integrity and maintenance plan for their gas transmission pipeline in adherence to AS2885. The key requirements of its plan are as follows: • APLNG will assume responsibility for the safety of the gas pipeline.

•

•

•

•

All threats to a gas pipeline will be identified and either controlled or the associated risks will be evaluated and managed to an acceptable level.

The gas pipeline will be designed and constructed to have sufficient strength, ductility and toughness to withstand all design loads to which it may be subjected during construction, testing and operation. The design will be reviewed, assessed and approved.

Before the gas pipeline is placed into operation, it will be inspected and tested to prove its integrity.

The integrity and safe operation of the gas pipeline will be maintained in accordance with an approved safety and operating plan.

Where changes occur in or to a gas pipeline or its surroundings, which alter the design basis

or affect the original integrity, appropriate steps will be taken to assess the changes and where necessary implement modifications to maintain safe operation of the gas pipeline.

• At the end of its system design life, the gas pipeline will be abandoned unless an approved engineering investigation determines that its continued operation is safe.

• Before a gas pipeline is abandoned, an abandonment plan will be developed and approved.

Jemena (Eastern Gas Pipeline) Pipeline integrity is ensured through continuous flow monitoring (via SCADA) and the capacity to limit and isolate flow. Automated and manual shut in valves are a feature at each receipt and delivery point, and at a further seventeen locations along the pipeline. The Jemena Melbourne Control Centre monitors, on a

continuous basis, the quality of the gas entering the pipeline. The analysis is performed by the gas chromatographs installed at each receipt point, and values are fed into the SCADA system.

PIPELINE INTEGRITY

•

FUTURE PROOFING OUR PIPELINES As the pipeline industry evolves, updates are constantly made to AS2885, and new and better ways to manage a pipeline’s integrity are brought to market. As Australia’s pipeline infrastructure ages, there is little doubt that our approach to operation and maintenance will need to adapt to meet the needs of the network.

The challenge for Standards Australia, the Australian Pipeline Industry Association and the committees involved in developing and updating AS2885, will be ensuring our gas pipeline network remains up to the task of safely delivering hydrocarbons to an energy-hungry population.

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We can assist you with extracting information, or simply provide the point cloud to you directly. Our team of over 40 surveyors means that we can be on site, to most places in Melbourne, within 24 hours.

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Infrastructure

31

PIPELINE INTEGRITY

COATINGS ASSESSMENT

FACILITY CRUCIAL TO PIPELINE

INFRASTRUCTURE

Energy Pipelines Cooperative Research Centre Chief Executive Officer Professor Valerie Linton provides an update on the establishment of the National Facility for Pipeline Coating Assessment.

P

32

ipeline infrastructure is essential for Australia’s long term economic stability and growth. It is important however that the key challenges which face our ageing industry and infrastructure are addressed through effective management and supported by research.

The Energy Pipelines Cooperative Research Centre (Energy Pipelines CRC) was established in 2009 as part of the Federal Government’s ongoing Cooperative Research Centres Program, with the vision of enabling safer, more efficient and reliable pipelines to meet Australia’s growing energy needs. As an organisation, the Energy Pipelines CRC has been praised by the Commonwealth Government for its continued high level of industry collaboration on research projects.

A key aspect of Energy Pipelines CRC research has been improving pipeline coatings and their durability.

The effective life of a pipeline is affected by corrosion and other environmentally assisted degradation factors. Understanding the factors that have an impact on pipeline coatings both during the construction phase and

in service provides the opportunity to ensure that the pipeline is appropriately protected from the external environment during its lifetime.

The Energy Pipelines CRC has supported Deakin University in the establishment of the National Facility for Pipeline Coatings Assessment (NFPCA). Like many other important initiatives of the Energy Pipelines CRC, the NFPCA is becoming a crucial part of the Australian pipeline industry providing corrosion and coating specialists with the necessary tools to ensure their product performs as required in the Australian environment.

The NFPCA was officially launched at Deakin University’s Waurn Ponds campus in March 2014 by the Energy Pipelines CRC and Deakin University.

This Facility was set up in response to the Australian energy pipeline industry’s needs for enhanced coating research, training, testing and materials assessment capabilities. The NFPCA is designed as a multi-purpose testing service and research facility. The facility includes test equipment to assess various coating performance parameters such as long term adhesion to steel and other pipeline coatings,

resistance to cathodic disbondment, resistance to impact and soil stress, and resistance to environmental attack.

FILLING A GAP IN THE INDUSTRY The facility, led by Professor Mike Tan, a leading figure in the study of applied electrochemistry and corrosion technologies at Deakin University, has been noted by senior industry members as filling a gap in the Australian pipeline industry capability. It is currently supporting pipeline durability research projects such as research into coating cracking and disbondment, stress corrosion cracking, pipeline health monitoring and cathodic protection.

The facility is also providing commercial, independent coating testing services to the wider industry including coating manufacturers, suppliers, applicators and end users.

The facility expects to see an increase in demand for testing services once their National Association of Testing Authority (NATA) accreditation is confirmed.

In the next stage of the facility’s expansion, research and testing capabilities will be added in coating

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flexibility assessment, cathodic disbondment testing and pipeline coating field or semi-field testing.

This will allow the NFPCA to conduct standard pipeline coating testing and research, and support future projects involving field pipeline testing. The NFPCA will be able to support research projects that require the assessment of pipeline coating systems under diverse environmental, mechanical and stray and telluric current conditions.

The facility is expected to grow with the reputation of the Energy Pipelines CRC’s research into the selection, testing and modelling of coatings (in particular joint coatings) for a 100-year pipeline life.

Currently there are some knowledge gaps in coating selection, application and testing. For instance, AS 3862 has no requirement for the flexibility of coatings above 600µm in thickness, with the setting of a value to be decided between the supplier and purchaser. This example of a lack of guidance in the Australian Standard suggests that there is a significant

requirement for further research in this area and highlights the need for continued collaboration between researchers and industry.

The NFPCA has been established to support the Australian pipeline industry through the provision of integrated

research and testing capabilities in the area of coating selection and performance assessment. Ultimately this will contribute to the long term integrity of Australian pipeline infrastructure.

APPLYING COATING IN THE FIELD A new pipeline coating solution for HDD and thrust boring applications has the unique ability to be applied at the job site – providing substantial cost and schedule savings.

T

he FiberTec pipe protection system brings unprecedented coating toughness to the coating of pipes being used in horizontal directional drilling (HDD) applications.

FiberTec is a shop or field applied abrasion resistant overcoat, which protects the original factory coating during HDD and thrust bore applications.

FiberTec is a flexible, preimpregnated polyester mat that consists of resins, fiberglass and special fillers. The longwearing shield of the FiberTec pipe protection system

offers optimal mechanical protection during an HDD installation.

Globally, FiberTec has made a substantial contribution to the success of more than 50 horizontal drills, some of these exceeding 25km of 6-48 inch pipes, in soil structures such as gravel, rock, clay and sand.

On site, FiberTec is easy to process, and requires only a cutting table, Stanley knife and daylight to cure FiberTec is not only suitable for protecting coated steel pipes and plastic pipes against mechanical stress but can also be used for other applications, such as

subsurface-to-surface joints, pipe clamp underlays, linings, etc. In short, wherever there is a need for high resistance to indentation and impacts, FiberTec offers the optimum protection.

FiberTec is available in Australia through Universal Corrosion Coatings, who can provide materials, train applicators, or provide a full turnkey supply and application service.

For more information, contact Universal Corrosion Coatings on 03 9310 3515 or visit www.unicc.com.au.

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HDD

EASING THE PRESSURE ON THE PENINSULA Melbourne water retailer South East Water is at the helm of one of the largest pressure sewerage constructions in Australian history, bringing its award-winning innovative sewerage control and monitoring systems to residents of the Mornington Peninsula.

T

he population of the Mornington Peninsula is steadily growing and peak summer periods see a sudden influx of residents to its large number of holiday homes. As a result, the region’s septic tanks take quite a thrashing from surges in usage.

Ageing, failing and poorly maintained septic tanks have resulted in waste polluting groundwater, waterways and the environment. To address the issue, South East Water is rolling out one of the largest projects of its kind in Australian history.

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MAKING A CONNECTION Across the peninsula, from Rye to Portsea, South East Water’s $357

million Peninsula ECO project will connect more than 16,000 properties (which currently rely on septic tanks and onsite treatment plants) to a new pressure sewerage network. Due to the size of this undertaking – over 230km of pipe will be installed in an accelerated time frame of 30 months – the project was divided into ten stages, each covering different areas.

Construction began in November 2013 and, if all goes to plan, will ultimately conclude when Blairgowrie is connected in July 2016. South East Water General Manager of Asset Creation, Charlie Littlefair, said the project’s integration of a novel approach to design, new technology and

trenchless drilling, has helped cement the retailer’s status as a forwardthinking corporation.

“This project really is a first of its kind in terms of design, construction and technology. The capital investment savings made possible by utilising pioneering technology to allow for downsizing of reticulation networks and transfer mains are significant.”

HDD, PUMPS AND PIPES Before the project began, an Environmental Impact Assessment was undertaken, to consider areas of high environmental importance or sensitivity. Various construction options were examined during the

HDD

INSTALLATION OF THE NEW ONEBOX.

AERIAL VIEW OF THE AREA BEING CONNECTED TO THE NETWORK.

design phase of the project. Ultimately, due to the project’s scale and nature, horizontal directional drilling (HDD) was the best choice for the construction and installation. The project marks the first time HDD has been used on a pressure sewerage network of this scale in Australia, with key contractors Zinfra and Interflow delivering 230km of reticulation pipeline.

“Trenchless drilling is well suited to the soils of the peninsula. The pipe sizes are relatively small compared to conventional gravity systems and constructing in this manner means that our surface disturbance and environmental footprint is minimal,” said Mr Littlefair.

“Our contractor’s crews are averaging 130–150m of installation per day. We’ve had customers contacting us wanting to know when the pipes will be installed, to which we were able to tell them it has already been constructed, they just didn’t realise,” said Mr Littlefair.

The second component of the project, 15 km of transfer main and associated pump stations, will be built by the Fulton Hogan Delplant Beca (FHDB) consortia. Several HDD crossings navigated through environmentally sensitive areas including a 542m crossing constructed

by BTB Australia, where 560mm diameter pipe was installed in ground

conditions that included running sand and marine clay. AHD Trenchless also completed several crossings, including a 550m crossing, where 560mm diameter pipe was installed in ground conditions that included limestone, wet sand and peat.

THE AWARD-WINNING TECHNOLOGY South East Water’s commercial arm, iota, developed the innovative OneBox system which forms a central component of the peninsula project.

This system incorporates a remote control telemetry system to monitor and coordinate individual pressure sewerage pumps at each property,

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HDD

38

which transforms an otherwise standard pressure sewerage system into an intelligent network. OneBox remotely monitors and controls a property’s pressure sewerage pump unit. This means that sewerage network operators can diagnose issues in real-time from a system-wide perspective, right down to a street and individual property level. This can all be done from a desktop or smart phone and allows operators to control flows within the system, reducing the strain on pump stations by ensuring steady flows. In times of high rainfall when sewerage systems reach peak, the pressure sewerage pumps can be slowed or shut down to allow the gravity system peak to pass.

“The ability to report pressure pump activity assists in determining peak flow demand, meaning transfer system management becomes more flexible. We often see wide variations in flows through the system during

peak holiday periods. To smooth these flows, manage capacity and rectify faults before they impact customers, we need to have a high level of visibility and control over our system – OneBox provides exactly that,” said Mr Littlefair.

“This is a radically different approach to designing an infrastructure system.

Utilising this patented technology has enabled for the downsizing of the reticulation network and transfer mains.

Due to this method, the Peninsula ECO Project has seen a 30 per cent saving in reticulation construction costs with the significant capital investment savings allowing for properties to be serviced at a lower cost.”

The technology integrates with the retailer’s supervisory control and data acquisition (SCADA) network, which operates with coded signals over communication channels. The network facilitates instant access to information on tank storage capacities, power failures, blockages and faults.

The information allows the retailer to take customer service to a new level, potentially diagnosing and resolving any issues before a customer even knows there is a problem. The technology received a Global Honour Award at the International Water Association (IWA) Project Innovation Awards, held in Korea in 2012.

“The data received from OneBox has also supported the identification of leaks on customer properties, which might otherwise remain undetected.

In one instance, the data transmitted from the technology indicated a property’s sewerage pump had activated well above normal pump cycles. As a result, we contacted the homeowner to recommend a leak analysis, which established that a toilet had been running continuously, adding unnecessarily to the resident’s bill,” said Mr Littlefair.

“This technology really has the potential to not only revolutionise

HDD

A DIAGRAM OF THE INTELLIGENT NETWORK BEING BUILT BY SOUTH EAST WATER.

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HDD

communities traditionally reliant on septic tanks, but the way water and sewerage corporations plan, design and operate sewerage schemes. We are very excited about the future of this innovative technology.”

ECO AND TAKING THE CONNECTION REGIONAL As part of the project, an Early Connection Option (ECO) is offered to enable customers to connect to the sewerage system up to 16 years earlier than scheduled. The ECO is available in addition to the scheduled rollout.

Customers don’t have to connect early, but can opt for connection and pay an early fee, which varies according to the location of the property and the month in which they choose to connect.

“By taking an ECO, residents can connect to the sewerage network over a decade earlier than through the scheduled rollout. This enables customers to take advantage of the

benefits of a sewerage connection sooner, like utilising previously restricted land from a septic tank to build a pool or establish further housing development opportunities,” said Mr Littlefair.

The water retailer has also recently broadened its offerings in pressure sewerage construction, with capabilities now surpassing their own supply region. A partnership with regional water corporation South Gippsland Water (VIC) has facilitated the recently announced Poowong, Loch and Nyora Sewerage Scheme.

“South East Water is perfectly positioned to offer specialist services that support sewerage solutions for regional communities,” said Mr Littlefair.

“The Poowong, Loch and Nyora communities had been waiting for a feasible option to convert their septic tanks to a sewerage system. We were able to provide that opportunity, which

THE ONEBOX DEVELOPED BY IOTA.

made the project a first of its kind for us as we work outside our boundaries to deliver significant asset creation. We look forward to future opportunities in assisting our neighbouring water corporations to deliver solutions for their communities.”

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HDD

HDD AND THE NBN:

OPPORTUNITIES FOR COLLABORATION

As the rollout of the National Broadband Network continues, horizontal directional drilling is increasingly playing a role in connecting households to the network.

42

The benefits of using horizontal directional drilling (HDD) to connect users to the National Broadband Network (NBN) are many. The technology allows a connection to be established, without the need for conventional trenching – benefitting residents, the environment and providing economic benefits also.

Demand for HDD is expected to increase as NBN construction moves ahead, and according to reports up to 60 per cent of the NBN will be installed

by HDD in some areas, with as many as 350 rigs predicted to be operating in future.

Construction of the NBN is now progressing in earnest with over 650,000 premises now passed and 250,000 premises activated.

NBN CONTINUES TO EXPAND IN NSW, QLD Leading the construction boom is New South Wales, where a further 27,100 homes and businesses were added to the NBN rollout schedule in September alone.

Pre-construction activities began for more than 23,800 premises in parts of Greater Sydney, Illawarra, the Central West and the Central Coast.

Work also got underway for fixed wireless facilities that will deliver fast broadband to more than 3,300 farms, homes and businesses situated outside metropolitan areas.

NBN Co spokesperson Darren Rudd said “More families and businesses in NSW are a step closer to being able to enjoy the benefits of fast and reliable broadband, which can deliver improved

access to e-health resources, online education, teleworking opportunities and entertainment on demand.

“For families in rural and regional communities in particular, NBN provides access to internet speeds and capacity that many in the big cities take for granted.”

This continues the momentum of the NBN rollout with more than 77,000 families and businesses are already connected to the NBN across the state.

The rollout also continues to gain momentum in Queensland, with work now underway to bring the NBN to around 140,000 homes and businesses across the state.

In September it was announced that more than 3,800 additional homes and businesses in parts of the Sunshine Coast, Far North Queensland, North

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NBN

Queensland and Southern Queensland had been added to the roll out map.

In addition, homes and businesses in parts of Aspley were the first residents in Brisbane to complete the transition to the NBN.

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HDD VERIFICATION OF COMPETENCY With the NBN rollout ramping up across Australia, the HDD industry has established a new method of assessing the abilities of drillers in the trenchless industry. The Verification of Competency (VOC) is aimed at ensuring horizontal directional drillers have the necessary skills to deliver NBN works as demand driven by the NBN increases.

The VOC has been developed by Trenchless Advisor in response to industry demand, and according to Managing Director Peter Brown, “Assessing for Verification of

Competency enables businesses to confirm that their employees or contractors are competent in their skills and use of equipment. A VOC is commonly used in many industries for pre-employment checks, contractual arrangements or site requirements.

“VOC enforcement is new for the HDD industry and is subject to interpretation. Working with industry leading clients, Trenchless Advisor has developed a formal process that allows for flexibility to meeting client needs whilst maintaining a high standard of assessment.”

The VOC is not training but instead a method of assessment to allow both employers and drillers themselves to gain a better understanding of their abilities, and will then be in a position to fill in the gaps.

The method is based on practical on-site observation and can assess competency on a range of machine

sizes and types.

The VOC is also endorsed by Dial Before You Dig who see it as another key way to protect underground assets.

The assessment will be administered by the Australian Drilling Industry Training Committee, which is a registered RTO, and is also supported by major manufacturers such as Vermeer and Ditchwitch.

Assessors are industry experts holding all relevant qualifications within the HDD industry and Training industry combined with years of HDD experience.

Until now, there has been no formal method of assessing a driller’s capability and while most contractors operate in a safe and competent way, there have been concerns about the presence of unqualified drillers.

It is hoped that utilities across all disciplines will adopt the VOC in the future.

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BORZALL EAGLE CLAW “The best feature of the Eagle Claw is the replaceable teeth.

We’ve always had good luck with this bit. We used the Eagle Claw on a job at Edwards Air Force Base in California and ran into hard, decomposed granite that was more like solid granite. The ground conditions were so hard we couldn’t use a regular duck-bit, nor could it be trenched. The Eagle Claw broke through the hard ground and we were able to complete multiple bores up to 300". Without the Eagle Claw we would not have been able to complete this part of the project.”

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S&S Drilling, Corona, California

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NBN

CHANGE AND AN EYE ON THE NBN PROJECT The National Broadband Network is currently undergoing its transition between rollout models. The past few months have been a time of decisions, change, trials and reviews for the project, while in the background the network continues to take shape. In this article we look at some of the most significant updates and changes and what they might mean for the future of the NBN.

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BREAKING NEW GROUND NBN Co has been undertaking extensive trials of fibre-to-the node (FTTN) and fibre-to-the-basement (FTTB) technology in advance of incorporating them into its multi-technology network rollout, as per the policy of the current Federal Government.

According to NBN Co’s Product Roadmap, work on the FTTB service and customer experience pilot began at the start of 2014 and trials are expected to be completed around the end of October 2014. The trial will involve connecting ten apartment buildings and office blocks in the Melbourne suburbs of Carlton, Parkville and Brunswick. The release of the final FTTB product has been delayed, and is now expected to be ready to connect apartment buildings in early 2015.

The corresponding FTTN pilot began in June 2014 and is expected to be complete at the end of September 2014.

The first customers were connected to FTTN as part of the initial trial in August, reaching download speeds of up to 96 mbps and upload speeds of

up to 30 mbps. This initial trial is taking place in Umina (NSW) and Epping (VIC). A further trial is also underway, in which NBN Co, in conjunction with Telstra, will construct 1000 nodes across Queensland and New South Wales. Another trial will see NBN Co independently build more than 300 additional nodes in Woy Woy, New South Wales and Warner, Queensland.

REVIEW AND REFORM The transition to a mixed-technology NBN rollout, as opposed to a full fibre-to-the premises rollout, has been ordered, with NBN Co told to begin connecting premises using the most time and cost-effective options that meet the necessary criteria –delivering a download speed of at least 25 megabits per second to all premises and 50 megabits per second to 90 per cent of premises within a public equity capital limit of $29.5 billion.

The recently released NBN costbenefit analysis, conducted by a specially selected panel headed by Dr Michael Vertigan, supported this

move. The panel’s report, The costs and benefits of high-speed broadband, focused on the economic and social costs and benefits arising from the availability of broadband of differing properties via various technologies.

It suggested that a multi-technology rollout (including fibre-to-the-node, fibre-to-the-premises, fixed wireless, satellite and hybrid fibre-coaxial technologies) would be cheaper and could be completed sooner than a full fibre rollout.

The report primarily used the 2014 Communications’ Chambers report to estimate domestic bandwidth requirements from 2013-2033, and compared different rollout scenarios using household willingness to pay (WTP) for high-speed broadband as a measure of the consumer benefits of the additional speed offered by the NBN. The four scenarios considered were: no further rollout, an unsubsidised rollout (only rolling out the network to areas where it can be undertaken without the need for any government subsidy), a multi-technology mix rollout,

NBN

TRANSITION:

by Michelle Goldsmith, Utility Associate Editor

and a full fibre-to-the-premises rollout.

The report concluded that consumers would rather have moderate broadband speed increases sooner, than wait longer for more significant speed increases, making a multi-technology mix the best option.

While the report has come under fire from some quarters, the Federal Government stated that they will take the findings into account for their NBN policy. The cost-benefit analysis was the fifth of the panel’s six commissioned reports. The full text and other reports can be accessed through the Department of Communications website, www.communications.gov.au.

THE QUESTION OF INFRASTRUCTURE COMPETITION One question that has dogged the NBN for some time is that of whether the network will be subject to infrastructure based competition from other network providers. This first became a possibility when TPG announced plans to connect large

apartment buildings in metropolitan areas to its existing fibre networks using fibre-to-the-basement technology.

The Australian Competition and Consumer Commission has completed its investigations into whether this plan breaches the ‘NBN level playing field provisions’ in the Telecommunications Act and announced that it will not intervene.

“Having carefully examined TPG’s plans, the ACCC does not propose to take further action in relation to TPG’s planned fibre to the basement network rollout to supply residential customers in high-rise buildings in Brisbane, Sydney, Melbourne, Adelaide and Perth,” ACCC Chairman Rod Sims said.

However, the ACCC will conduct a declaration inquiry into whether the FTTB service provided by TPG should be the subject of access regulation.

Amongst other matters, the inquiry will consider whether regulation is necessary to ensure that consumers in TPG connected buildings can benefit

from competitive retail markets for high speed broadband services.

Nevertheless, the decision means that NBN Co will need to compete for customers in some of the most potentially profitable areas.

Furthermore, according to statements reportedly made in March 2014 by Telstra chief executive, David Thodey, other networks, including Telstra, may follow TPG’s example.

In response to TPG’s plans, NBN Co CEO Bill Morrow ordered the rollout bought forward in some of the contested areas using fibre-to-thepremises (FTTP) technology until the FTTB product is ready.

All in all, this is an interesting time for the NBN project, with some longstanding questions being answered and some new questions arising. The next quarter is shaping up to be a defining period for the rollout, with much resting on the results of the various trials and how soon the new products can be incorporated into the mix.

47

COMMUNICATIONS

MAKING THE SWITCH With Telstra having recently announced plans to close the 2G network by the end of 2016, we take a look at the main implications this decision will have on the utility sector – and how utilities can make the switch to 3G and 4G networks.

G

SM, or Global System for Mobile communications, was the second generation of mobile technology after Analog.

According to Telstra Networks Manager Mike Wright, GSM was the mobile system that changed the world – it created one of the most complete and comprehensive mobile standards the world had ever seen, making the mobile phone accessible to the mass market. GSM also introduced us to international roaming, text messaging and the early mobile internet.

With the development of 3G and 4G networks, GSM now counts for only 1 per cent of Telstra’s mobile network

traffic in Australia, but it still remains widely used for telemetry and machine to machine (M2M) communication.

UTILITY SECTOR IMPACTS The utility sector was among the early adopters of cellular telemetry equipment, and many utilities are still purchasing 2G modems today.

According to Maxon Australia Research and Development Manager Caleb Gordon, the major challenge facing these organisations is in firstly finding an alternative, and then implementing the change.

There will be some who may opt for the easy solution of changing to a

different carrier offering 2G network coverage – but this is simply delaying the inevitable.

For those that look to move to 3 and 4G networks, the process will depend on whether their operating system is integrated or modular.

An integrated measurement and control solution may mean that the entire energy meter or RTU has to be replaced – usually at significant cost. With modular systems, the modem swap should involve finding an alternative which either already supports all the communication commands required, or which can be modified to do so.

UTILITY LOCATING MADE EASY

T

he MALÅ Easy Locator pioneered ground penetrating radar utility locating and became the industry standard to which all later products are compared. Built on this massive success, MALÅ introduces the new patented Easy Locator High Dynamic Range (HDR). The MALÅ Easy Locator HDR is faster, even easier to use, more powerful and delivers cleaner data with more detail at up to 20 per cent better penetration depth to comparable systems.

Where traditional GPR systems are slow and blurred, the patented HDR technology deploys real-time signal sampling, which effectively allows survey speeds at up to 300 km/h whilst delivering super-crisp images.

48

Advances in the design and construction of buried utilities have resulted in the ever increasing use of non-metallic materials. Locating professionals know the difficulties associated with non-metallic utilities and that conventional locating tools leave you a few pieces short. Ground penetrating radar is the only technology available that doesn’t require physical connection to the utility, and doesn’t rely on electromagnetic radiation from the utility. The MALÅ Easy Locator series was designed to meet the requirements of the locating industry and has become the standard ground penetrating radar utility locating tool.

The MALÅ Easy Locator HDR looks at first glance similar to its predecessor and is keeping all the much-loved features and functions but offers major improvements in data quality, power management and speed. While the Easy Locator’s well-known look and feel is kept intact, the user interface is made even simpler and clearer. Collected data is of unprecedented quality and maximum continuous run-time is now 14 hours. The new Easy Locator HDR also includes a built-in DGPS receiver, simplifying positioning of identified utilities.

For more information on the new MALÅ Easy Locator HDR contact MALÅ GPR Australia on 0438 278 902 or support@malagpr.com.au.

WHAT ACTION SHOULD UTILITIES TAKE NOW?

Utilities should, in the very near future, evaluate how many units will need to be upgraded, then start the process of determining the engineering alternatives. Utilities should take into consideration the hardware options and potential compatibility challenges.

Consideration should extend to what components of the existing system also require upgrades, so that these can be combined together with field visits and routine maintenance.

Thankfully the coverage of the 3G network is sufficient enough to cover most of the 2G install base already, but in areas where it is not, it is advised to get in touch with the carriers directly in order to work out the best approach.

Caleb says that, “Maxon has some innovative tools to assist in this process, from customer-specific customisation of software and firmware interfaces to modem emulation, which can help make the 2G-3G/4G upgrade as quick and cost

COMMUNICATIONS

Once a suitable alternative is confirmed, the major challenge to these customers is in the physical process of swapping these 2G modems out for 3G or 4G alternatives. This will normally involve at a minimum, implementation of a cabling change whereby the old modem cable connections are replaced entirely or an adapter cable is custom manufactured.

Caleb says the final step, which is often the most painful, is replacing the equipment itself; this can often be a costly and time consuming process, involving significant man hours and complicated logistics. As this can often be even more costly than the replacement equipment itself, it is crucial to ensure that the replacement is going to do the job well and that the technicians have all the tools they need for the swapout.

CALEB GORDON.

effective as possible.”

MANAGING THE TRANSITION In summary, transitioning from 2G doesn’t have to be difficult. The key is to start planning your move to 3G or 4G networks today, and consult with industry experts for the most efficient and cost-effective ways to manage the change.

2G Going.. Going...

network Shutdown How does this impact you?

What options do you have?

What are the costs?

Time is short. Talk to us today! www.maxon.com.au | 02 8707 3000 | sales@maxon.com.au

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ASSET MANAGEMENT

STRATEGIC

ASS

ASSET MANAGEMENT

by Glenn Pallesen, Asset Management Advisory – Principal, Select Solutions

Recently, there has been much discussion about ISO 55001. Having just successfully completed certification to this standard, Select Solutions and AusNet Services provide some thoughts and tips for the application of Strategic Asset Management in the utilities sector.

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hose experienced in asset management will know that strategic asset management is not a new concept, and elements of strategic asset management have been reflected in international standards for many years. ISO 9000, released in 1987, describes a quality system detailing some of the elements of strategic asset management.

Reflecting on the content of ISO 55001, the concepts of strategic asset management have been around in some form for the past 40 years.

ISO 55001 represents a step-change of international proportions which provides a published guide to those without an inherent ‘systems’ skill set. As with all standards, the clear benefits of ISO 55001 include the ability to create consistent approaches across similar organisations and providing external recognition to help build stakeholder credibility; be that internally to executive committees and boards, or externally to clients, partners, shareholders and regulators.

At its core, ISO 55001 is fundamentally about good business management. The success of any business relies on how well it manages its assets; be those assets physical, human or financial.

AUSNET SERVICES ACCREDITATION JOURNEY Across its multi-billion dollar portfolio of electricity and gas distribution and transmission assets, AusNet Services (formerly SP AusNet) has been accredited certification to PAS55 and subsequently ISO 55001, achieving certification for the latter in April 2014.

The process, led by the late John Allen, was driven to transform the business rather than simply achieving certification, with an objective to ensure that as an asset owner, AusNet Services

fulfilled its obligation to stakeholders to manage its assets effectively. Even as the business was entering the final steps of achieving certification, the team was already looking beyond the scope of ISO 55001 to introduce further asset management initiatives using advanced benchmarks, such as those in practice in the UK, to continue the drive of continuous improvement.

Through the journey of implementing this enterprise wide management system, AusNet Services identified a number of enablers for successful implementation of the system.

The following steps are recommended for organisations seeking to implement a strategic asset management system: • Complete your own internal self-assessment to the standard. There are some great tools available on the web. The Institute of Asset Management has a Self-Assessment Tool to get you started on their website – https://theiam.org/Self-Assessment-MethodologyGuidance-20Jun14.

• Develop an improvement plan using the results.

This will be specific to your organisation. Don’t underestimate the opportunity to start communicating to your organisation about the ‘change journey’ you are commencing. A dedicated project manager is required and ideally you will want someone that inherently understands a systems approach to management. The implementation can take 6 to 18 months.

• When you feel you are ready, get an external precertification review. Choose your qualified certifier carefully. Added value can come if the certifier has experience in your industry. A good certifier will develop a partnership with you. This is much more than an

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ASSET MANAGEMENT

Transmission Asset Risk Management OFGEM tool

Accredit Transmission to PAS55 2004

Accredit electricity and gas distribution to Internal Gap PAS55 2008 Assessment

Commitment

2004

2005

2006

PAS55 2008 AusNet Services Surveillance Audit

2007

2008

Internal Gap Assessment Stakeholder Independent Engagement gap assessment

2009

2010

2011

2012

Surveillance Audit

2013

2014

Accredit to ISO 550001

Accredit Transmission to PAS55 2008

AUSNET SERVICES ASSET MANAGEMENT SYSTEM MILESTONE TIMELINE

•

•

academic ‘tick in the box’. It is completed on the basis of positive input and improvement – if your certifier can’t find areas of improvement (even if you can be certified), then find another one.

Update the improvement plan after the precertification review. At this stage there should be limited actions to complete prior to the certification process. Allow around four weeks for final preparations.

Arrange and conduct a certification audit.

Remember this is a partnership; you’re likely to keep this improvement and certification cycle going for many years. Know your certifier and ensure they are adding value to the process. This is all about improving the organisation, not just gaining the certification.

Tip 1 – Establish an asset management committee early. This provides an executive level of governance and will help with communication, reinforcing intent and removing road blocks Tip 2 – Ensure you have a ‘champion’. Preferably at general manager level.

Tip 3 – This is a large scale change management exercise. At all stages take the opportunity to involve others and communicate, communicate, communicate!

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There are a number of benefits that AusNet Services has realised over the eight years since implementing a strategic asset management system across the business, including: • External validation which gives stakeholders, both internal and external, confidence that our assets are being managed effectively.

•

• •

•

Assessment of the maturity of the different asset management functions allows the business to understand areas of improvement and development.

A focus on driving change across the business.

Improved company understanding of, and commitment to, the broader requirements of a sound asset management system.

Assists with developing credibility with industry regulators.

STAKEHOLDER BENEFITS Implementing a strategic asset management system requires significant investment, resources and stakeholder support. The objective is to develop a system that delivers a return on that investment through a multi-layered understanding of the whole of life asset risks and costs.

The value of assets is maximised where the system extends beyond the technical regime of an organisation and into other areas of support including business development, human resources, risk, finance, treasury, quality, safety, and environment.

For this reason, when considering asset life cycle optimisation an organisation needs to address each stage of the asset life: • Acquisition: Apply effort at the front end of an asset’s life in the definition and design phase. That is, get it right, be specific, know what you want and why.

• Operations and maintenance: Shift from being reactive, to planned, and eventually to proactive. This will entail effort in defining and investing in appropriate condition monitoring programs and management / interpretation of asset data. A mature organisation will be shifting from deterministic planning to probabilistic planning.

Plan Design G U I D E D B OR I NG S PE C I A L I S TS

Identify need Asset life cycle Decommission (Replace or dispose)

Procure/ Build

(Plan-Do-Check-Act)

Modify or upgrade

Commission Operate, maintain & performance

ASSET LIFE CYCLE (PLAN-DO-CHECK-ACT) TIMELINE.

•

WHERE ACCURACY MATTERS

In other words, moving from applying the same operation and maintenance plan to all of the same assets types, to applying an operation and maintenance plan on a risk-based approach where the organisation understands the risk profile of each of its assets in the context of likelihood and consequence of failure. Under probabilistic planning the same asset type may have a vastly different operation and maintenance plan.

Life extension/disposal: Asset life in the utility industry for different assets can range from 15 years to 80 years. Learn from the operations and maintenance phase and the asset information gathered. Add to this the overarching corporate objectives to determine the optimum course of action to retire an asset or extend its life or renew the asset and start the cycle again.

STRATEGIC ASSET MANAGEMENT AND SAFETY It would be remiss of me not to draw attention to the safety aspects of best practice asset management and the benefits of implementing good asset management practices. If assets are managed successfully and information is captured in a format that can be analysed and shared with others, we can learn about our assets and understand how they are likely to perform in the future (i.e. they become predictable). If assets are predictable then we are able to foresee and reduce or eliminate the chance of a safety event occurring. What better reason could there be than ensuring that at the end of each day, you can enjoy, either directly or indirectly, contributing to the optimal management of your organisation’s assets and go home safely, ready and confident to return tomorrow.

GUIDED BORING SPECIALISTS ABOUT US Edge Underground is a precision microtunnelling contractor that operates in Australia and the USA. With a focus on innovative technology and expertise, Edge Underground designs and enhances the performance of trenchless equipment.

OUR SERVICES • Microtunnelling • Pipe Jacking • Thrust Boring • Laser Tunnel Boring Find out more about keyhole pipeline installation

www.keyholepipeline.com.au

( *

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0458 000 009

stuart@edgeunderground.co

www.edgeunderground.co

ASSET MANAGEMENT

A LARGE DIAMETER TUNNEL REHABILITATED WITH ITS PIPETECH’S TUNNELINE.

PIPE, CULVERT AND TUNNEL MAINTENANCE: REPLACE OR RENEW? As our utility assets age and the demands on them increase, asset managers are faced with the decision of whether the replace or renew their critical infrastructure.

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WHY REPLACE WHEN YOU CAN RENEW? This is a fundamental question facing our utilities and asset owners, as our ageing infrastructure starts to show signs of age and stress. As our population increases, the demands on utility assets are constantly increasing, and meanwhile, critical planned maintenance programs are being

sidelined in the continual drive for cost savings.

Pipes, culverts, tunnels and subsurface access conduits are all prone to damage and degradation, and with the addition of today’s traffic and loading – factors that were never conceived at the time of the asset’s original design – planned maintenance programs need to be developed if these assets are to

remain intact and serviceable in the years to come.

Regardless of how these structures were originally constructed, like the above-ground infrastructure that they sit under, regular maintenance is required, and from time to time major upgrades are necessary.

The cost of replacing underground assets is high, and inevitably new

ASSET MANAGEMENT

BEFORE - 3.6M TWIN CSP

construction causes large scale disruption in the near vicinity of the work. Replacing assets also often carries an unacceptably high carbon footprint, which impacts on the environment and community.

RENEWAL OPTIONS Several remedial systems exist in today’s market that are designed for the small bore, non-man entry market. These are generally classified as flexible linings but are frequently offered as proxy structural solutions for larger profile culvert and tunnel repairs. Whilst these solutions can be suitable for small sections they are not always appropriate for larger remedial proposals, and are nearly always limited in the lengths that they can be applied to without surface intervention – which then almost always means excavations from the surface. To avoid asset usage disruptions and open-cut intervention costs, culvert and pipe remediation over 1,200 mm generally requires a different approach, as structural integrity poses higher demands to deliver effective designs with a design life of 75 years or more.

ITS PipeTech, who have offices in Sydney, Brisbane and Perth, specialise in pipe renewal and culvert renovation throughout Australia and offer several best practice technologies to address these issues. These state-of-the-art remediation solutions achieve an acceptable stand-alone structural lining without the need for open-cut

4900MM FINAL REHAB

replacement, therefore avoiding issues such as cost, impact on the community and environmental concerns.

ITS PipeTech offers a cured-in-placepipe (CIPP) relining solution for pipes and culverts up to 1,500mm (the Berolina liner system), and a reinforced steel and concrete solution (Tunneline) for large diameter rehabilitation projects. Tunneline was designed in accordance with AS5100.2 and has been used extensively under road, rail and other types of infrastructure. ITS PipeTech has been successfully using Tunneline as a solution to the everincreasing problem of our degenerating and aging infrastructure issues.

THE TUNNELINE SOLUTION Tunneline is an innovative reinforced concrete lining technology developed in the UK and used extensively to upgrade and maintain crossings under roads, railways and waterways, as well as for drainage remediation for the past 30 years.

Tunneline is a one pass operation and requires little or no pre-works to stabilise the existing host condition.

It is able to line most existing profiles (circular, box, ovoid and so on) and will also accommodate vertical and horizontal bends as well as size and shape transitions within the existing host structures. It can be used to line all known culvert materials in a size range from 1,200 to 9,000mm.

Tunneline can be designed as a stand-alone structure or as a composite

form, where a factor of the existing host tunnel is taken into consideration in the final design. It is designed to withstand the external ground loading and traffic loads from both road and rail under limit state conditions to AS5100, and can also be designed to cater for internal pressure loading up to 64 Bar, where the conduit is used as a transit for pressurised liquids. The system is also able to line vertical shafts, tanks and chambers as well as horizontal and inclined culverts.

In comparison to conventional rehabilitation methodology, such as GRP or PVC/PE systems, Tunneline is a one-stage operation and compliant with AS5100 offering a quicker, stronger, and more cost-effective solution. It is installed without having to excavate access from the surface and expensive transport costs associated with the delivery of traditionally used liners and product to site are eliminated.

In Australia, ITS PipeTech has completed 22 projects with Tunneline, and is currently working on another three projects totalling over 2,300m.

The size of these vary from 1,200 to 5,600mm and profiles have been circular, square, oviform, elliptical and rectangular, with host substrates comprising of brick, concrete, CSP and CSU constructions.

Globally, Tunneline has been used to complete over 850 separate projects with over 400km of assets successfully rehabilitated.

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DESALINATION

DESALINATION PLANTS: THE INSURANCE POLICY WE HAVE TO HAVE

Desalination plants have had a rough start to life in Australia – their critics are many and they argue that they are too expensive to build, too expensive to run and ultimately unnecessary. However Keith Davies, Chief Executive Officer of Sydney Desalination Plant, argues that on the planet’s driest continent, desalination plants are the insurance policy we simply have to have.

AERIAL VIEW OF THE SYDNEY DESALINATION PLANT.

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THE REVERSE OSMOSIS MEMBRANES INSIDE THE SYDNEY DESALINATION PLANT.

AN INVESTMENT IN THE FUTURE Despite the easing of the drought conditions that inspired its construction, Keith Davies believes that the Sydney Desalination Plant is still a necessary investment in securing the city’s water supply.

The plant was constructed to improve drinking water security for Sydney. It provided drinking water to Sydney throughout its two years of operation between 2010 and 2012. In 2012, once the drought had broken and dam levels had increased, in line with Government Policy, the plant ceased operations and has been in preservation since that time.

“The construction of the Sydney Desalination Plant means that Sydney is prepared for the next drought and able to cope with increases in demand due to other factors such as population growth.”

DESALINATION

“The Sydney Desalination Plant is an asset that provides valuable water security for Sydney. It can provide drinking water during times of shortage and has the major benefit of being independent of rainfall. Think of it as an insurance policy that can provide a safe source of drinking water when needed.”

READY TO SERVE While the plant is not currently operating, it remains ready to resume its activities when its services are again needed.

“When the plant is offline we remain in care and maintenance phase to ensure that the plant will be ready when the time comes to commence operations. When the plant ceases treating water, the steps to enter the care and maintenance stage begin with capping the ocean intakes and outlets. This means that the plant can become ‘dry’ which protects and prolongs the stainless steel pipework and equipment and ensures the life of the concrete structures within the plant. The delicate reverse osmosis membranes are then put under preservation and the pipeline is disinfected and sealed. The workforce is essentially halved during this time.

“According to the operating rules set out by the government, the plant will be told to resume operations at full production when the dam levels fall below 70 per cent. Under the operating regime, the plant will then be shutdown again when the dam levels rise above 80 per cent.

“There is no way of predicting exactly what the weather will do and thus when the plant will start operating again. Our role is not to try and predict weather patterns but to make sure that we are ready whatever the weather may be.

There is no certainty with the weather, but the likelihood is that demand for

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DESALINATION

water will grow as population increases and the effects of changing climate means a heightened probability of future droughts. Having a means of providing safe drinking water that is not dependent on rainfall is essential for a first world city like Sydney.”

When the plant receives the order to begin operating again, a number of procedures must occur before it can begin treating water. Firstly, the caps would need to be removed to get seawater flowing into the plant.

The membranes would need to be taken out of preservation. Recruitment of staff would occur and the pipeline would need to be disinfected. Once we are told to commence operations we anticipate it will take up to eight months to be ready to produce water.

We will be pulling out all stops to beat this deadline.”

HITTING BACK AT THE CRITICS Mr Davies is also keen to address some common criticisms of the plant.

“A common misconception about the Sydney Desalination Plant is that the water it produces is expensive. In fact, the cost of producing desalinated water is around one tenth of a cent per litre. Compare this to around two dollars for a 600ml bottle of water that you would buy at the shops and it is not expensive at all especially when supplies from surface water dwindle. It is also important to remember that due to regulated and transparent pricing the cost is the same under private ownership as it was under government ownership.

“Another concern that some people have about desalination is the amount of energy consumption. The energy used by the Sydney Desalination Plant is 100 per cent offset by wind energy from the Capital Hill Wind Farm and is therefore carbon neutral. The energy used to produce enough desalinated water to supply one household is about the same as the energy used to run the average household fridge.”

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AN INLET STRUCTURE INSIDE THE PLANT DURING OPERATION.

WIND TURBINES PROVIDE THE ENERGY FOR THE SYDNEY DESALINATION PLANT.

DESALINATION IS HERE TO STAY While all of Australia’s eastern seaboard desalination plants have had a somewhat controversial start to life, one thing we can be certain of is that with the investment that has already gone into the infrastructure and the benefits they bring to water security, they are here to stay.

While water supplies across

Australia are currently secure, it would be foolish to think that this will remain the case in the years and decades to come. As Keith argues, desalination is the insurance policy for security we simply have to have – he might find he has more people agreeing with him the next time our water storage levels drop below critical levels, as they no doubt one day will.

WATER

UNIFIED CALL FOR BETTER URBAN WATER REGULATION The Water Services Association of Australia recently released its flagship report for 2014, ‘Improving economic regulation of urban water’. This report supported recent calls from customers, the water industry and the private sector for better economic regulation of the urban water sector.

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WATER

SENATOR SIMON BIRMINGHAM, WSAA EXECUTIVE DIRECTOR ADAM LOVELL AND WSAA DEPUTY CHAIR JOHN RINGHAM AT THE LAUNCH.

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60

he Water Services Association of Australia (WSAA), the peak industry body for the Australian urban water sector, commissioned Frontier Economics to review the economic regulation of the urban water industry in Australia and identify improvements that would provide long-term benefits to stakeholders and customers. The resulting report provides a comprehensive assessment of best practice economic regulation in the urban water sector and draws

on experience from water and other industries, both from within Australia and overseas.

Senator Simon Birmingham, Parliamentary Secretary for the Environment, officially launched the report. “Best practice regulation should be clearly independent of water utilities and their owners. It should be as light touch as possible, ensure it keeps prices as low as possible, and help drive efficient future infrastructure decisions,” he said.

Keeping prices as low as possible is definitely in the interest of customers and Consumer Utilities Advocacy Centre Executive Officer Jo Benvenuti welcomed the release of the report.

“This report acknowledges the central role of consumers in designing the pricing and service reliability of this most essential of all services.”

Customers are the ultimate beneficiaries of reforms to economic regulation, with prices kept as low as possible by providing greater incentives

WATER

for productivity and efficiency. In addition, services and investments are targeted at areas of highest customer value. Better economic regulation also encourages more transparent decisionmaking and greater opportunities for customer engagement.

Infrastructure Partnerships Australia also supported the release of the report. Its Chief Executive, Brendan Lyon, endorsed the report for its “unabashed focus on getting the right regulation in place to drive efficient water prices, and preparing the water industry for meaningful microeconomic reform”.

Addressing the shortcomings in economic regulation requires action from government, economic regulators and water utilities. Regardless of the future reform path for the industry, good economic regulation is a foundation for a resilient industry that is able to meet the challenges of urban growth, climate change and the liveability of our cities and towns.

WSAA believes that states acting alone is not enough and that national action is required. “Clear minimum and agreed standards, backed by rewards and sanctions, to be met by all jurisdictions are required regardless of the future reform path for the urban water industry,” said WSAA’s Executive Director, Adam Lovell.

WSAA strongly recommends a national urban water agreement through the Council of Australian Governments to further the reform process. The opportunity must be taken to build on the existing National Water Initiative and put in place clear minimum and agreed

SENATOR SIMON BIRMINGHAM LAUNCHING THE REPORT.

standards for economic regulation to be met by all jurisdictions.

Furthermore, WSAA strongly recommends that minimum standards be developed around: • Establishing regulation that is independent from governments • Setting clear objectives for regulators to act in the long-term interests of customers • Establishing incentives for productivity and innovation • Assessment of financial viability to protect the long-term interests of customers and stakeholders • Strong and transparent customer engagement within the

regulatory framework Merits review and appeal mechanisms for water businesses and other stakeholders.

WSAA is the peak industry body for the urban water industry. The industry is critical to Australia’s economy, society and environment, providing water and wastewater services to over 20 million Australians.

•

Copies of the full Report and accompanying WSAA Position Statement are available on the WSAA website, www.wsaa.asn.au.

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SMART GRIDS

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SMART GRID, THE FUTURE OF AUSTRALIA’S ELECTRICITY NETWORKS

Over four years, the Smart Grid, Smart City project saw the trial of Australia’s first commercial-scale smart grid rollout. The final report released in July 2014 offers valuable insights into smart grid technologies and their adoption, and provides a variety of recommendations spanning the breadth of the energy sector.

SMART GRIDS

SMART CITY:

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WHY SMART GRIDS? The Australian electricity grid is evolving and the old assumptions about energy demand and generation used to design grids are being called into question.

Overall electricity demand and consumption has moved away from the highly positive growth exhibited in the past, towards a general downward trend.

Distributed generation technologies (such as solar PV) are experiencing increasingly widespread uptake by consumers while regulatory frameworks, policies and standards have also changed over time.

This has resulted in the need for a more advanced, responsive grid that incorporates innovative technologies and increases the decision-making capacity of network operators and has driven the development of smart grid technologies. A smart grid, as defined by Standards Australia, is “an electricity system incorporating electricity and communications networks, which can intelligently integrate the actions of parties connected to it”.

AN IMMENSE UNDERTAKING The Smart Grid, Smart City project was undertaken and funded by a number of government and industry bodies.

The trials focused on producing results that could be used to determine whether individual or combinations of smart grid technologies could be used to achieve economic benefits for Australian electricity consumers.

THE SMART GRID, SMART CITY TRIALS WERE BASED IN NEWCASTLE FROM 2010 TO 2014.

THE RESULTS ARE IN The findings of the final report, Shaping Australia’s Energy Future: National Cost Benefit Assessment, suggest that smart grid technologies can play a role in addressing many of the challenges currently facing the Australian energy sector, and also emphasise the importance of demand management,

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SMART GRIDS

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and support the need for tariff reform to keep pricing reasonable and fair.

Based on the trials undertaken, the study found that the deployment of smart grid technologies in Australia has the potential to yield a net economic benefit of up to $28 billion over the next 20 years.

The report identified four key aspects to realising these benefits and improving consumer pricing outcomes: • Technological development and deployment of enabling (smart grid) technologies.

• The introduction of cost reflective electricity pricing including dynamic tariffs.

• Consumer behaviour change with respect to electricity consumption (to better manage any future growth in peak demand).

• Energy market reform (many aspects of which are already underway).

SMART GRID TECHNOLOGIES UNDER THE MICROSCOPE The report highlighted the vital role that smart grid technology can play in network reliability, with benefits valued at approximately $15 billion in savings.

FDIR technologies The products and technologies evaluated throughout the project included advanced fault detection, isolation and restoration (FDIR) technologies, which can reduce the duration of outages to customers on unaffected network sections, automatically switch the network and implement sophisticated switching schemes.

The report found that the deployment of FDIR technologies has the potential to deliver the economic benefit of any individual technology or product trialled throughout the program.

The net benefit of FDIR technology deployment was estimated to be around $14.41 billion, in present value terms, in Australia through to 2034.

More than 99 per cent of these benefits related to improvements in reliability.

The remainder, approximately $4 million, was due to reduced fault finding costs.

MONITORING OF UNDERGROUND ASSETS HELPS UTILITIES MAKE MORE EFFICIENT DECISIONS ON RATINGS AND MAINTENANCE OF THOSE ASSETS.

Recommendation – The report recommends that although significant capital investment is initially required, electricity distribution businesses should consider implementing FDIR technologies in the areas where they could best improve the System Average Interruption Duration Index (SAIDI), or where they could deliver the same results at a lower cost. Further investigation into the business case for these technologies, including the regulations and incentives surrounding them were also encouraged.

Active Volt-VAr Control (AVVC) technologies AVVC technologies apply automated voltage regulating and reactive power controls to measure and maintain acceptable voltages and high power factor at all points in the HV distribution network under varying load conditions.

The trials for these technologies included automated management of power factor, conservation voltage reduction and peak demand reduction and demonstrated the technical feasibility of each technology application in an Australian distribution network environment.

Analysis of these technologies over the trial period showed the potential for net benefits of up to $756 million

in present value terms. Most of these benefits were realised in urban and short rural networks.

Recommendation – The report concluded that network operators should investigate the potential benefits which could be achieved by deploying AVVC technologies in areas of their networks where there are power factor, capacity or voltage constraints.

Substation and feeder monitoring (SFM) SFM technologies use a collection of monitoring devices to measure current, voltage, power factor and a range of environmental and technical conditions including partial discharges, dissolved gases and thermal conditions in order to monitor the network state and condition of assets within the distribution network and to predict faults before they occur.

The results showed a national net benefit of $88 million for an investment of $163 million attributable to SFM network monitoring technologies.

Recommendation – The report states that while both FDIR and SFM technologies provide network monitoring capabilities, the modeling showed a better business case for FDIR than for SFM in most network types due to the additional reliability benefits of FDIR. The exception to this is in CBD

SMART GRIDS

i PROPORTION OF THE TRIAL HOUSEHOLDS WHO INDICATED THAT THEY WOULD RESPOND TO A PEAK EVENT NO MATTER HOW EXTREME THE TEMPERATURE.

networks where existing high levels of reliability mean SFM becomes a better investment. Therefore, the report recommends that network providers consider deploying FDIR technologies instead of lower cost SFM technologies in appropriate parts of their networks.

SMART METER INFRASTRUCTURE, CUSTOMER FEEDBACK TECHNOLOGIES AND DYNAMIC TARIFFS Smart meters provide the enabling infrastructure required for smart grids.

The trials examined the potential benefits of both stand-alone smart meters (without dynamic tariffs) and smart meters paired with dynamic tariffs and viewed in relation to other changes in the electricity market.

The cost benefit assessment found that currently, for most network types in Australia, the costs of deploying smart meter infrastructure on a standalone basis outweighed the financial benefits.

However, a current economic business case was identified across all network topologies for the deployment of smart meter infrastructure in conjunction with: • A customer voluntary take up of a dynamic tariff with customer feedback technologies, or • The installation of distributed generation, distributed storage, electric vehicle smart charging and DRED control products.

The report found that a net benefit of more than $1.12 billion in present value terms could be realised from

the deployment of smart meters with dynamic tariffs and products in Australia through to 2034 (the exact figure depending on economic conditions).

Recommendations – The report suggested that given the strong business case for dynamic tariffs and customer feedback technologies (with smart meters), state governments should allow for flexible pricing to be available to small customers in each state.

The AER should undertake continued assessment of the take up of voluntary dynamic tariffs in Australia and report these rates as part of its reporting on the performance of energy retailers and distributors.

The COAG Energy Council should assess the benefits of a stronger policy mechanism to deploy dynamic tariffs with smart meters if the voluntary take up of dynamic tariffs proves insufficient to realise the potential benefits.

DISTRIBUTED GENERATION: THREAT OR OPPORTUNITY Distributed generation (such as solar PV) has the potential at certain penetration rates to reduce peak demand and mains energy consumption, which can generate benefits including avoided new generator capacity capital expenditure, avoided generator operational expenditure and avoided new network capacity capital expenditure.

However, at more granular levels in the network, for example at a feeder level, high levels of distributed generation have the capacity to create

TRIAL PARTICIPANTS REPORTING MAGNITUDE OF CHANGES TO DAILY ROUTINE

TRIAL PARTICIPANTS REPORTING BEHAVIOUR CHANGES AFTER 6-18 MONTHS.

challenges in voltage regulation and system stability. These impacts depend upon a number of factors including the number, size and type of distributed generation devices and the network topology.

Results from the cost benefit assessment showed that maintaining the existing flat or inclining block retail tariffs in Australia will continue to incentivise the installation of larger solar PV systems, as customers seek to further reduce their consumption of grid-sourced electricity. Unfortunately, this does not necessary reduce peak demand.

By contrast, under the smart grid case, the number of consumers investing in rooftop solar PV continues to grow, but the size of the systems are smaller because the cross subsidy through the existing tariff structures is reduced.

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Recommendations – The report suggests that the COAG Energy Council should, in conjunction with the AEMC, develop a market mechanism which more efficiently values export from distributed energy resources (distributed generation and distributed storage) during market and network peak events. In this way customers may be financially incentivised to export electricity from distributed generation and distributed storage devices in response to market signals.

For non-NEM states, state and territory governments should consider the most appropriate organisation to undertake a similar review.

PRICING REFORM Annual residential customer bills were assessed under the smart grid case and business-as-usual (BAU) case for passive customers (residential customers who choose not to adopt a dynamic price tariff or do not adopt distributed generation or storage and remain on inclining block tariffs), and distributed generation and storage customers (residential customers who adopt distributed generation and/or storage along with dynamic tariffs).

There are a number of key differences between these cases: • The passive customer under smart grid case is $156 per annum better off than the BAU passive customer.

• Under the BAU case there is a significantly higher number of passive customers than under the smart grid case.

• The cost of the distributed generation and distributed storage cross subsidy is almost nine times higher under the BAU case at $420 per year than for the smart grid case at $47 per year.

• The annualised customer investment component in distributed generation and distributed storage is higher under BAU, reflecting the over incentivisation for larger systems caused by the inclining block tariff.

A similar analysis was undertaken on business customer bills.

WITH INCREASED MONITORING AND CONTROL, CONTROL ROOM ENGINEERS CAN RESTORE POWER QUICKER IN REGIONAL AREAS WHEN THERE’S AN UNPLANNED OUTAGE.

The differences in results for business customers under each case were: • The passive business customer under smart grid case is $2,018 per annum better off than the BAU passive business customer.

• The cost of the distributed generation and distributed storage cross subsidy under the BAU case at $9,251 per year for passive customers, or more than three times higher than for smart grid passive customers.

• The annualised customer investment cost in distributed generation and distributed storage is higher under BAU, reflecting the over incentivisation for larger systems caused by the inclining block tariff.

The findings for both residential and business customer bills indicate a better result for passive customers (who do not adopt distributed generation or storage nor change their behaviour) under a smart grid case than under the BAU case.

Recommendations – In order to avoid a significant future cross subsidy for passive customers modelled under a business-as-usual approach, the report suggests that jurisdictions should consider mandating the uptake of dynamic tariffs for customer initiated meter upgrades, which would include

when customers adopt distributed generation and distributed storage.

To protect financially vulnerable customers, the COAG Energy Council should agree an appropriate policy response which provides a safety net for those who are unable to make behavioural or tariff changes.

CONCLUSIONS The report highlights a variety of opportunities for electricity utilities to harness new technologies for a more dynamic and adaptable grid that also represents significant cost savings and greater choice for consumers.

However, the report also cautions on the ramifications of failing to adapt to changes in the market and successfully integrate new technologies.

The report itself states that realising the potential benefits of smart technologies requires an integrated solution – if any one aspect is not implemented, then the extent of net national economic benefits available will be reduced.

The Smart Grid, Smart City report and its findings represent a solid framework upon which utilities can base further investigations into the rollout of smart grids and associated reforms, in order to determine the right solutions for each area throughout their networks and shape the future of Australia’s grid.

For more information on the details of the aims and details of the trials, trial locations and location selection criteria, see the online version of this article at: utilitymagazine.com.au/smart-grid-smart-city

SMART GRID, SMART CITY: THE INDUSTRY RESPONDS

John Bradley, ENA Chief Executive Officer “This first commercial-scale smart grid demonstration project shows a smarter energy grid has the potential to provide $28 billion in net benefits to Australia.

“However, the analysis also highlights this is only possible through smarter tariff structures, so customers are rewarded for using energy efficiently and network costs are evenly shared. If we stick with current electricity tariffs using outdated meters, the report predicts a more costly system with consumers paying $10 billion more than they need to, due to over-investment in onsite generation and storage.”

Matthew Warren, ESAA Chief Executive Officer “The landmark Smart Grid, Smart City report is the latest research in a growing body of evidence showing electricity tariffs are unfair and urgently need reform.

The report shows ordinary Australian households could save more than $150 a year if Australia’s antiquated electricity tariffs and systems were reformed to make the grid more efficient. The savings come from a suite of measures to make the grid more reliable, a better balance between electricity supply and demand and to ensure new technologies like solar and storage are installed only when and where they deliver real value.

“The rapid uptake of new technologies like solar panels is changing the way we generate and use electricity, but the way we pay for power is still stuck in the 1970s. If we don’t change tariffs to better reflect how we use the network, families who can’t afford solar PV or air conditioners will keep on paying too much.

The Smart Grid, Smart City Report found that without comprehensive tariff reform Australians were at risk of over-investing in solar panels at a net loss of around $10 billion by 2034, while stifling more efficient deploy of new storage technologies. We expect to see a relentless wave of new energy technologies roll out this century. It’s essential we get the rules right to make sure they are used in the most efficient way.”

Ian Macfarlane, Federal Minister for Industry “This important and complex work has produced some very useful data that will contribute to the broader policy development for Australia’s energy future. This trial has shown that with smart technology used in

the right way, Australians can pay less for electricity.

“The implementation of smart meters and other technologies for consumers who want to use them is an important consideration. The bottom line is that any new technology should empower consumers to lower their bills, without adding extra costs.”

SMART GRIDS

UTILITY SPOKE TO A NUMBER OF INDUSTRY PARTICIPANTS TO GAUGE THEIR RESPONSE TO THE SMART GRID, SMART CITY REPORT. HERE’S WHAT THEY HAD TO SAY.

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Dr Richard Sharp, Arup Principal “Industry participants now have at their disposal a suite of proven technologies to make electricity supply more efficient and less costly. The challenge now is for relevant jurisdictions and regulatory authorities to work together so that retailers and distributors and other participants have the flexibility to adapt and deploy these technologies where it is of benefit to consumers.”

Ian McLeod, Ergon Energy Chief Executive “Ergon Energy welcomes research that assists electricity network operators to develop effective management strategies for the future grid while recognising the need to enable customers with their energy choices.

“We envisage a future where customers will have much greater control and understanding of their home or business electricity consumption and demand through advances like smart grid technologies. Various initiatives including our Electric Vehicle (EV) trial, Townsville Energy Sense Community and Solar Cities are shaping Ergon’s strategies which are aimed at giving our customers affordable choice and control while optimising and protecting the efficiency of the grid as whole.

“There are more questions than definitive answers as to how the electricity network will be best used as these changes continue, but Ergon believes it will shape this future. We acknowledge that in time a true smart grid will deliver a multitude of advantages, including self-diagnosis of problems through to sharing energy resources and applications where they are needed, for customers and distributors such as Ergon Energy. “‘Smarter’ networks, generators and customer installations will be part of the answer but they also need smarter tariff structures, and markets that support positive economic outcomes. Ergon Energy’s commitment to our customers is to deliver ‘Peace of Mind, Choice and Control for the Best Possible Price’ and we will achieve this by creating an effective market and delivering efficient services.”

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SMART GRIDS

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BRINGING ABOUT THE POWER OF CHOICE In late 2012, the Australian Energy Market Commission’s Power of Choice review recommended substantial reforms to the National Energy Market (NEM) at both state and federal levels. These reforms aim to support the electricity market in meeting consumer needs over the next 15-20 years and provide consumers with a greater variety of options regarding their electricity use. Following extensive industry consultation and the consideration of various rule change requests from the COAG Energy Council and IPART, the draft rule determination for distribution network pricing agreements has been released.

ENABLING CONSUMER CHOICE The Power of Choice report includes a variety of recommendations by the AEMC, intended to provide more opportunities for electricity consumers to make informed choices about their electricity use based on the benefits provided by end use services.

These include measures to reform distribution network pricing principles to improve consumer understanding of cost reflective network tariffs, and enabling flexible pricing options to provide greater reward for those who change their consumption patterns.

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RULE CHANGE REQUESTS After the Power of Choice report was released, IPART and the Council of Australian Governments’ (COAG) Standing Council on Energy and Resources (SCER) submitted a number of rule change requests related to distribution network pricing arrangements.

Under current price structures, all consumers pay the same network prices based on fixed charges and the volume of electricity consumed, regardless of how or when they are using power. Network prices are responsible for about 50 per cent of the electricity prices paid by residential consumers on average across Australia, and a key driver of these costs is peak demand.

SCER proposed that network pricing principles be adjusted to encourage distribution network prices to be set on a more cost reflective basis, to provide more efficient pricing signals to consumers.

Other objectives of the rule change requests received from IPART or SCER included: • Greater certainty for retailers and consumers on how and when distribution network businesses will change their network prices over time; • More opportunity for those affected by distribution network prices to be consulted on the development of those prices; and • Changes to the timing of annual network price setting.

The AEMC has now finished considering the requests and addressed them in the new draft rule.

THE DRAFT RULE In the draft determination, the AEMC has set a new pricing objective for distribution businesses so that prices can more accurately reflect the costs of providing network services to each consumer.

In order to achieve the objective distribution businesses must comply with four new pricing principles: • Each network tariff must be based on the long run marginal

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cost of providing the service.

If consumers choose to take actions that will reduce future network costs, such as by reducing their energy usage during peak demand, then they will be rewarded with lower prices. Network businesses will have flexibility about how they measure long run marginal cost.

The revenue to be recovered from each network tariff must recover the network business’s total efficient costs of providing services in a way that minimises distortions to price signals that encourage efficient use of the network by consumers.

Tariffs are to be developed in line with a new consumer impact principle that requires the impact of annual changes in network prices to be minimised and prices to be easily understood.

Consumers are more likely to be able to respond to the price signals that network prices are designed to send if they can relate their usage decisions to network price structures and sudden price changes are avoided. Network businesses can gradually phase-in new prices over several years if necessary to minimise the impacts of price changes on consumers.

SMART GRIDS

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Network tariffs must comply with any jurisdictional pricing obligations imposed by state or territory governments. But if network businesses need to depart from the above principles to meet jurisdictional pricing obligations, they must do so transparently and only to the minimum extent necessary.

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OBLIGATIONS FOR DISTRIBUTION BUSINESSES The draft rule contains a new process and new timeframes for setting network prices. Distribution businesses will be required to: • Develop a tariff structure statement for approval by the AER as part of their five-year regulatory reset process.

• Key matters including price structures will be approved as part of this process, subject to a limited ability to

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make amendments during the regulatory period with AER approval.

• Price levels will continue to be approved annually, but a pricing schedule will give consumers and retailers more information about indicative price levels for the regulatory period.

Demonstrate to the AER how they have consulted with consumers and retailers in developing their price structures.

Notify consumers and retailers of final network prices at least six weeks before they commence, allowing them to better prepare for price changes.

WHERE TO NOW? AEMC Chairman John Pierce says the organisation is “focused on establishing the right regulatory regime for the future so everyone can make clearly informed

decisions about their energy use as new technologies emerge”.

The AEMC’s final rule determination will be published in November 2014 after the consideration of further stakeholder submissions and discussion via a public forum.

The AEMC is currently assessing a series of other Power of Choice rule changes related to a number of areas including customer access to information about their energy consumption; expanding competition in metering and related services; the availability of better demand side participation information; and reform of the demand management embedded generation incentive scheme.

Further updates about the program and the final rule will be covered in future issues of Utility. The rule change schedule can be found on the Power of Choice website: www.aemc.gov.au/ Major-Pages/Power-of-choice

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TRANSFORMERS & SUBSTATIONS

NEW LEASE OF LIFE Many of TransGrid’s substation and transmission line assets were built in the 1950s and 1960s and are now approaching the end of their serviceable lives. As a result, a progressive replacement or refurbishment of these assets across New South Wales is currently underway, which will give them all a new lease of life.

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ransGrid recently proposed to increase expenditure on the replacement of existing assets by around 40 per cent from current levels, in light of many of these assets requiring renewal and replacement due to their age and condition.

“Given the large number of assets that were constructed during the initial establishment of the transmission network, this has resulted in an increase in the number of TransGrid assets including substations and their equipment, now requiring replacement or renewal over the next five years,” said TransGrid’s Executive General Manager of Network Planning and Performance, Stephen Clark.

TransGrid’s asset renewal program is based on the organisation’s asset renewal system, which has been independently reviewed against newly released international standard ISO55001 (for more information on the standard, see A new standard in asset management, page 34). As a result TransGrid expects to attain full certification to ensure it continues to achieve international best practice standards in asset management.

“This program is essential to ensure the ongoing safety of staff, contractors and the public, and to maintain the reliable supply of electricity to New South Wales,” Mr Clark added.

When TransGrid performs a condition assessment on a substation asset, a range of indicators are used to determine whether renewal or replacement works are required.

“All of our asset renewals are based

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THE YANCO SUBSTATION, WHICH IS CURRENTLY BEING RENEWED.

on condition. The age of the asset is just one indicator which we look at.

Age points us in the direction of doing a full scale condition assessment,” said TransGrid Asset Manager Garrie Chubb.

“TransGrid looks at the environment in which the substation is located, its initial design, maintenance history, defects, service performance and any replacements that may have previously occurred at the site.”

Once a condition assessment has been completed, TransGrid identifies the scale of the works required. Possible options include a whole scale renewal, targeted renewal or just a component type replacement of the substation and its equipment.

UPCOMING RENEWAL PROJECTS Yanco Substation renewal The Yanco 132kV Substation was commissioned in 1969 and supplies Essential Energy’s Narrandera Zone Substation at 66kV and several local 33kV feeders. A large majority of the substation’s equipment is reaching the end of its serviceable life and will be replaced in order to maintain reliability of supply. The refurbishment of the substation is expected to be completed by late 2015.

The in-situ renewal of the Yanco substation will involve the replacement of the primary and secondary systems and the:

TRANSFORMERS & SUBSTATIONS

A TRANSGRID EMPLOYEE PERFORMING SUBSTATION MAINTENANCE.

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Replacement of four 132kV circuit breakers Decommissioning of twelve current transformers Demolition and removal of the 132/33kV transformer, auxiliary transformer, associated switchbays and transformer compound Augmentation of communication facilities.

Cooma Substation replacement The Cooma 132kV Substation was established in 1954 and supplies the 132kV lines to Bega and Snowy Adit/Munyang, as well as supplying electricity to the Cooma township, alpine region and New South Wales far south coast. The substation is supplied by two 132kV lines from the Canberra and Williamsdale area. All components of the existing substation are reaching the end of their serviceable life and a complete replacement is required.

Due to existing site constraints, the rebuild of the substation could not be completed in-situ and an alternative site, adjacent to the existing substation, was selected. Construction at the new site has commenced with the project expected to be completed in 2016.

The establishment of the new 132kV substation will comprise of the following components: • Rearrangement of the existing 132kV transmission lines to connect to the new substation site • Construction of a communications facility within the switchyard • Construction of a permanent access road from the Monaro Highway to the substation • Visual screening and landscaping works • Decommissioning of TransGrid plant and equipment at the existing Cooma Substation site

Vales Point Substation rebuild The Vales Point 330kV Substation connects Vales Point power station into the electricity supply grid and supplies the local Ausgrid load at 132kV. The rebuild of the substation involves a staged in-situ rebuild of the 330kV and 132kV switchyards. This will include the replacement of some substation equipment and associated infrastructure improvements, with existing equipment that is in serviceable condition to be retained.

The project is expected to commence mid 2015 with works to be completed by late 2017. The key features of the rebuild will include: • Replacement of equipment and the secondary systems within the 330kV switchyard • Removal of the double breaker bays within the 330kV switchyard • Rebuilding of the double breaker bays within the spare

THE YANCO SUBSTATION. IMAGE CREDIT: THE IRRIGATOR, LEETON.

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TRANSFORMERS & SUBSTATIONS CIVIL WORKS HAVE COMMENCED AT THE COOMA SUBSTATION.

TRANSGRID – WHAT WE DO TransGrid has been an integral part of delivering electricity to the people of New South Wales (NSW) for more than 60 years.

It owns and operates one of the largest high-voltage transmission networks in Australia, up to 12,800km of transmission line and more than 90 substations, connecting generators. distributors and major end-users in NSW and the ACT. It also has links to Queensland and Victoria, facilitating interstate energy trading. Its operations are closely regulated to ensure power system security and TransGrid’s aim is to provide a safe, reliable, efficient and world-class electricity supply from power generators to distributors, which then deliver the electricity to homes across the state.

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bays and 330kV tie transformer switchbays Refurbishing the relay buildings and installing secondary systems for the 330kV and 132kV switchyards Replacement of equipment and the secondary systems within the communications building Removal of two transmission towers Installation of a single transmission tower to reconnect lines into the relocated double breaker bays.

Tamworth Substation rebuild The Tamworth 132kV Substation was constructed in 1961 and currently supplies the Tamworth area loads with nine feeders at 66kV to Essential Energy. It sources supply from another substation located in Tamworth (330kV substation) through two short 132kV lines. The existing 132kV substation has reached the end of its serviceable

life and a complete replacement is required. The construction of the new substation will be within the current footprint of the existing substation site. Construction has commenced and works are expected to be completed in 2017.

The scope of this project includes: • Construction of a new 132kV substation to replace the existing • Construction of a 132kV bus section breaker bay at Tamworth 330kV Substation • Rearrangement of existing 132kV lines to establish two 132kV connections between the Tamworth 330kV Substation and the new Tamworth 132kV Substation • Cutover of 66kV lines to the new 132kV substation • Provision of secondary systems suitable for the staging of works and the final arrangement.

BUILDING WITH CONCRETE BASE TECHNOLOGY IS LIFTED INTO POSITION AT SOUTH TOOWOOMBA.

TRANSFORMERS & SUBSTATIONS

AN 18M-LONG, 70-TONNE MODULAR SUBSTATION

ELECTRICITY INFRASTRUCTURE TO UNDERPIN REGIONAL GROWTH Regional electricity distributor Ergon Energy is currently engaged in two significant infrastructure projects aiming to improve reliability and underpin growth in Queensland’s Darling Downs.

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n Toowoomba’s CBD a $70million, three-storey substation designed to blend with a nearby shopping centre is taking shape.

Further south in Warwick, constructing a new substation within the footprint of the existing one without interruption of supply to around 5,000 customers will be the challenge for Ergon Energy’s Major Projects team over the next 18 months.

Ergon’s Major Projects General Manager, Brian Iwaszczyn, said that, when completed, the infrastructure will underpin future growth in the

two population centres and provide a reliable electricity supply for years to come.

Toowoomba’s three-storey indoor central substation is part of a more than $70million program of work and will incorporate new technologies including gas-insulated switchgear (which saves significant amounts of space compared with air insulated equipment).

The project also involves an upgrade at the nearby South Toowoomba substation, including gas-insulated switchgear technology and dual-circuit

110kV underground cables between the two subs to provide a higher level of reliability and security of supply for 24,000 customers.

A key component of the south Toowoomba site – an 18m-long, 70-tonne modular building with concrete base technology - was built at Ergon’s manufacturing facility in Brisbane and transported to the site in August.

“The Queensland Investment Corporation began development of the central Toowoomba site in late April this year, with QIC project manager

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TRANSFORMERS & SUBSTATIONS 11KV SWITCHBOARD. ERGON’S FACTORY-BUILT SOLUTIONS HAVE THE HIGH VOLTAGE SWITCHGEAR (11-145KV) FULLY INSTALLED AND ALL FACTORY ACCEPTANCE TESTING COMPLETED PRIOR TO THE SWITCHROOMS BEING DELIVERED TO SITE.

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Savills engaging civil contractors Kane Constructions,” Mr Iwaszczyn said.

Handover to Ergon Energy for the next stage – electrical fit-out – was planned to commence in November.

Mr Iwaszczyn said the substation will service the growing Gardentown Shopping Centre redevelopment, due to open in 2016, and underpin growth in the city’s central business district for decades to come.

While smaller in scale, the Warwick project calls for another focus.

“East Warwick substation has served the community well, however a modern replacement was clearly needed to meet future requirements,”

Mr Iwaszczyn said.

“The challenge at this site is maintaining supply as we build a new sub in the footprint of the old East Warwick sub by late 2015.”

Transformer capacity will increase from 20MVA to 50MVA, meaning the new transformers will be able to meet future demand on the network and enable some load that has been temporarily transferred to West Warwick substation to be returned.

“The East Warwick sub will be rebuilt in three stages to ensure continuity of power supply while the work proceeds,” Mr Iwaszczyn said.

Stage one, slated for completion by

February 2015, will see the installation of a new 25MVA transformer and modular building which will allow load transfer from the existing substation to the new equipment.

The second stage involves the de-energisation and demolition of the former substation.

The third stage will be the construction of the remaining new substation plant such as the second transformer and modular building, NER’s, capacitor banks, station services transformers, fence and driveway.

While the existing substation is built outdoors, the revamped version will

TRANSFORMERS & SUBSTATIONS

SWING-FRAME PROTECTION AND CONTROL PANEL. PROTECTION AND CONTROL PANELS FOR EACH FACTORY-BUILT CONTROL ROOM ARE ASSEMBLED, INSTALLED AND TESTED PRIOR TO DELIVERY.

feature two modular buildings to house new switchgear. Ergon Energy will again manufacture the two modular substation buildings at its facility at Banyo on Brisbane’s north side before transporting them 170km to Warwick site as complete units. The factory-built solutions - designed and built to align with the equipment lifecycles – will be fully functional and incorporate switchgear and associated panel wiring.

Tenix, the principal contractor onsite, began work at the East Warwick site in mid-July.

Mr Iwaszczyn said the modules from Brisbane would go a long way to

improve the visual aesthetic of the site for nearby residents.

“The West Warwick substation has recently been upgraded, and work is also under way to upgrade the Warwick bulk supply substation. Meanwhile the high-voltage lines between the substations have also been replaced,” Mr Iwaszczyn said.

“Almost a decade ago, this was one of the worst-performing parts of our network, but since then we have refurbished a sub-transmission line from Toowoomba to Warwick and rebuilt the second one as a new, high-reliability line.

“When the work at East Warwick

and the bulk supply substation has been completed, the Warwick community can be confident of having a safe and reliable power supply for years to come.”

Completion of the Toowoomba and Warwick projects will be two milestones for Ergon’s significant refurbishment program to key electricity network infrastructure on the Darling Downs.

A multi-million dollar improvement program has seen improved network reliability to customers in Dalby, Stanthorpe, and Miles, as well as Waroo, Coomrinth, and Sandy Creek areas in Queensland.

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The utility industry is regularly required to call on an enormous and varied range of specialists; from mapping, to drilling, to wastewater treatment, to asset management, to pipe relining, to pipeline integrity, to land access, to risk management, and the list goes on. To make the process a little easier, Utility magazine is bringing together experts from various fields to answer your questions.

HDD

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WHAT ARE THE MOST COMMON MISTAKES DRILLING CONTRACTORS MAKE AND WHAT ADVICE WOULD YOU GIVE TO CONTRACTORS WANTING TO KNOW HOW TO PLAN AND ENGINEER A COMPLEX CROSSING? HDD expert Charles Stockton says: Firstly, drilling risks should always be minimised by undertaking adequate geotechnical surveys prior to drilling commencing. The contractor then needs to maintain thorough drilling records, which can be used to continually refine the geological model and assist in decision making during construction. Too often geotechnical information is limited and specific geological surveys have not been conducted along the entire HDD route. If the geotechnical conditions are known prior to drilling, the identified risks can be minimised through proactive planning and management rather than being solved reactively on site.

Contractors or experienced consultants should work with the client to develop an appropriate scope of work for the survey, as Stockton Drilling are currently doing for Arrow Energy in Queensland. Regardless of how comprehensive the site geotechnical surveys for the drilling program are, it is also essential to maintain thorough site records. These records should be used to continually refine the geological model, assist in site decision making and plan for future projects.

Often I hear contractors complain that there isn’t sufficient or appropriate reference material available to help them plan complex crossings. I advise them that the best information available to them is their own drilling records.

It is essential for contractors to keep accurate drilling logs for all projects completed. These drilling logs, once analysed, then provide the competitive edge and become the basis for planning and costing future projects. The drilling logs must accurately capture details of the tooling, rig performance and drilling fluid system.

These records can then be aligned with the steering engineers report, allowing for a precise geological model, including timeline plots to be constructed for use in the reaming operations. The timeline plots minutes per drill pipe by distance, clearly indicating the different reaming stages and formation changes making it a useful planning tool.

Often, the need for detailed data collection and mapping of each metre of the hole as it is drilled is overlooked, instead relying heavily on existing borehole data. Often these records would only be referred to if a problem occurs later on, which is a reactive rather than proactive approach. A combination of drillers logs, mud logs and steering logs should be used to build up a detailed geological model in real time.

Drawing timeline plots can also provide a means to: • Compare tooling performance and refine cutter and tool selection • Plan when trips will be conducted for cleaning or cutter change • Determine the mud program and pump rates for each section of the hole • Note any formation changes to prevent doglegs or twist offs during reaming • Plan expected durations for each phase of the work • Formalise information to be fed back into the estimating and planning departments

ABOUT CHARLES STOCKTON Horizontal Directional Drilling professional Charles Stockton, the Managing Director of Stockton Drilling Services. UK-born Charles has been a part of the HDD sector in Australasia since 2003. Charles is a graduate in civil engineering from Loughborough University (UK). Initially he played a key role for Stockton Pipelines who pioneered the development in the UK of HDD in 1990. Charles contributed to Stockton Pipelines becoming an industry leader and during this time Charles received three drilling awards from the UK Society for Trenchless Technology for new technologies and projects of special interest. Two years after arriving in Australia, Charles set up Stockton Drilling Services, a leading engineering consultancy specialising in HDD and other trenchless pipeline installation methods. Charles has a team of highly experienced project engineers, managers, supervisors, HSE and risk personnel.

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Optimise decision making for schedule planning and equipment sparing.

The scale at which data is monitored and analysed must also be considered.

Every metre or every minute may be too fine and only produce conflicting information; while every hour or 50m

may be too coarse and not provide discernable differences. It may also be necessary to monitor different parts of the operations at different intervals. As long as the data is recorded regularly and diligently then it will always be possible to refine your search to highlight the areas of concern.

Another example of why precise record keeping is essential is during recovery of a broken drill pipe. When forward reaming, the drill pipe is put under compression rather than tension.

Therefore the chances for drill pipe failure are substantially higher than with conventional back reaming. It is again essential that precise measurements are taken of everything that goes down hole so if something goes wrong the diameter and location of the broken component are known. Both internal and external diameters, the distance to the next upset or tool joint and the precise length and diameter of all components crossover and subs must be known. With this information

available it should be possible for the team to determine the best fishing tool to be employed and carefully orchestrate recovery of the broken component.

Developing a culture within the industry where ideas are shared will help to promote HDD as a reliable and robust solution to the majority of today’s pipeline problems. The industry will continue to grow and not be surpassed by demand for new technologies as long as we continue to meet the client’s expectations.

DRILLING LOGS FROM COMPLETED PROJECTS CAN HELP GIVE CONTRACTORS A COMPETITIVE EDGE.

MICROTUNNELLING WHAT ARE THE MOST IMPORTANT FACTORS TO CONSIDER BEFORE COMMENCING ANY MICROTUNNELLING JOB? Microtunnelling expert Stuart Harrison says: Before you begin any microtunnelling job, there are four critical factors to consider.

1. Understanding the prevailing ground conditions is paramount in getting successful outcomes from microtunnelling. Your findings in regard to the prevailing ground conditions will then also go a long way to determining the type of pipe to be installed, and the length of the line. The equipment to be utilised will also be somewhat determined by the geotechnical information provided. Because the ground conditions are such a critical aspect of any microtunnelling job, before appointing a microtunnelling contractor, companies should always look into the contractor to try and ascertain the likelihood of success – you

wouldn’t want an inexperienced crew in difficult ground conditions.

2. The precision of the accuracy of an installation comes down to a number of important factors: • The guidance system – you must have an accurate guidance system in order to get an accurate installation (such as laser or total station) • The ability of the drill head to steer – if drill heads can’t cut across, they will need to progress to effect a steer, creating a snaking effect in the ground • Selection of the cutting face – this needs to match the ground conditions in order to steer effectively • Quality checking of equipment – ensuring the equipment is of good repair prior to any launch • The ability of the operator – typically a lack of understanding of ground conditions and cutting faces, slow reaction times and poor interpretation of the way the head is steering (or not

steering) in the ground will have a dramatic impact on the overall accuracy of any installation.

In addition, before appointing any contractor for a microtunnelling job, companies should consider: • The contractor’s track record in the presumed ground conditions • The equipment and method they will utilise • The contractor’s contingency plans if things don’t go as expected • Their depth of knowledge within the field.

ABOUT STUART HARRISON Stuart Harrison is the Managing Director of Edge Underground, where he specialises in on-grade microtunnelling installations with millimeter accuracy. Stuart is also the inventor of the Axis guided boring system, and he is constantly working to improve the effectiveness of this and other trenchless systems used in the installation of gravity sewers.

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GLOBAL NAVIGATION SATELLITE SYSTEMS WHAT EFFECT DOES THE NUMBER OF CHANNELS HAVE ON THE OPERATION OF GNSS EQUIPMENT? GNSS expert Evan Bollard says: All GNSS equipment requires a sufficient number of channels to perform the required observations.

With the increasing proliferation of positioning satellites the number of channels available in a receiver could be a limitation for optimal productivity or robustness. In general terms, the more channels available on a receiver, the better precision/productivity/ robustness can be achieved from that receiver. However, other considerations must also be made in relation to measurement type (code or carrier phase) processor speed, power usage and interface design when choosing a suitable receiver to use for a particular project.

Focusing on carrier phase capable receivers typically used for professional work, we can make the following generalisation: channels (basically the radio frequency front end) can either be fixed to certain capabilities based on the hardware configuration at manufacture, or can be fully controlled by the on-board firmware as to what use (or frequency range) to assign to each channel on the receiver. As an example, the acquisition of signals can be achieved faster (during both the

start and reacquisition processes if the signal is lost) if multiple channels are assigned to look for each satellite and each signal on that satellite (e.g. by slightly shifting the part of the code the receiver is trying to match on each channel, thus covering the possibilities many times faster).

As you could imagine this acquisition can be much faster than if one channel is assigned to look for each satellite code signal on a sequential basis. This speed increase improves productivity by allowing initialisation to be realised earlier. You can see how the number of required channels needed to achieve faster acquisition can increase quite rapidly if you are using a multi constellation receiver tracking as many as 35 visible satellites (possible now with suitable receivers) with in some cases five (or more) signals available from each satellite.

This is equivalent to up to 175 signals before even considering the use of multiple channels per satellite signal.

Also additional channels can be used for functions such as interference monitoring. Multiple channels can be used to track a single signal using slightly different tracking loop parameters and thus provide more robust tracking of that signal in difficult or changing environments such as under canopy or in areas of high

multipath. The use of more channels provides more raw data to be used in the determination of the receiver’s position. The extra observations provide more redundant information and allows the statistical analysis to be performed in a more robust way by allowing for the removal of identified ‘noisy’ or outlier measurements whilst maintaining sufficient redundancy to get the correct answer for the PNT (position, navigation, time) solution.

So as a general statement in answer to the question – the more channels the better, with consideration of other factors such as those mentioned very briefly above.

ABOUT EVAN BOLLARD Evan Bollard has over 30 years of experience in the specification, implementation and use of GNSS equipment in all types of high accuracy applications, both real time and post processed.

Evan is a surveyor by profession who has been involved in the development of major machine control applications from concept through to design, prototyping, manufacture and marketing since 1999. He is currently a GNSS Solutions Specialist with GlobalPOS.

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usteck partnered with Kummert, a German manufacturer of mobile inspection systems, earlier this year, and the move has been well received across the industry.

“We received our first shipment of the Kummert Crawler systems this February, and since then, we’ve sold over thirteen more systems.

“We’ve been blown away by the response to Kummert, and when you understand the technology involved, it’s easy to see why.”

Tristan believes that the appeal in the Kummert range lies in the company’s fresh approach to developing pipeline inspection equipment.

“A lot of the technology when it comes to pipeline inspection has been around for many years, in some cases up to fifty years,” said Tristan.

“As technology has evolved, these manufacturers improve their equipment in a ‘bolt-on’ style approach, which allows it to be backwardly compatible – but it can make the equipment rather cumbersome to work with.

“Kummert are relatively new to the world of pipeline inspection, and they’ve entered the game with a fresh approach. Their new pipeline inspection gear is only around three to four years old, and it can do everything its major competitors can – and more – while being a much neater and more compact machine to operate.”

The response of the Australian market to the Kummert range of pipeline inspection equipment is perhaps best measured by the two awards it recently picked up – at the Water Industry Operator Awards in Logan, Queensland, in June, the

Kummert pipeline inspection equipment was recognised as being the Best New Technology in the market; and the technology took out the same award at the Water NZ conference in September.

The relationship with Kummert is indicative of the companies Austeck makes a point of partnering with around the world. Other technologies Austeck has the exclusive rights to include pioneering robotics manufacturer IST, also from Germany, and US-based Infosense Inc.

PEACE OF MIND The other main benefit Austeck is able to offer its customers is its equipment servicing arm, which operates out of the company’s recently overhauled head office facility in Alexandria, Sydney.

Tristan says that at this facility, the company’s skilled technicians service all of the equipment sold by the company – regardless of whether or not that particular product is still sold by Austeck.

“Austeck has been around for a very long time, and one of the reasons our customers continue to return to us is because they know that we will to continue to look after them and their equipment, long after the initial purchase transaction is made.

“This promise also applies to products that we no longer stock – we will always provide support for any piece of equipment sold, regardless of whether or not we still stock that product.

“This promise is part of the reason our customers know they can purchase their equipment confidently through Austeck.”

Founded in 1992, Austeck has established itself as the market leader in robotic opto-electronics. Austeck is the largest supplier and the leading service and support company for pipeline inspection equipment in Australia.

Boasting a nationwide customer network of over 600 contractors, councils and water authorities, Austeck can provide what few others can: the facilities and the manpower to service their clients adequately. They have the experience and expertise in place to ensure the successful implementation of the equipment into their client’s business operations; and the backup service Austeck offers gives clients the quality, security, and peace of mind they need.

For more information, contact the team at Austeck on (02) 8305 3300 or visit www.austeck.com.

Partner solutions

Established in 1992, Austeck provides sales advice and support to utilities looking to expand their capabilities in underground asset management. The company offers a range of equipment, from CCTV systems and software to pipe locating and leak detecting equipment.

C O M PA N Y NEWS

INSPECTING GADGETS FOR MANAGING ASSETS

EDITORIAL SCHEDULE

FEBRUARY 2015 MAJOR FEATURES

SPECIAL FOCUS

SOLAR

UTILITY LOCATION

EQUIPMENT & MACHINERY

DAMS

SEWER REHABILITATION

SWITCHGEAR

SAFETY

EMBEDDED NETWORKS

TESTING AND MEASUREMENT

BIG DATA

DISTRIBUTED GENERATION

CABLE PLOUGHING

SYDNEY WATER ACCREDITED

IRRIGATION

DRONES

PROVIDERS

PUMPS, VALVES, COMPRESSORS AND FILTERS

MAY 2015 MAJOR FEATURES

SPECIAL FOCUS

DEMAND MANAGEMENT

INSPECTION, CCTV AND

EQUIPMENT & MACHINERY

ENERGY NETWORKS

CONDITION ASSESSMENT

SMART METERS

AND DISTRIBUTION

MAPPING, GIS & SURVEYING

COMMUNICATIONS DEVICES

COAL SEAM GAS

M2M

TRENCHERS

WATER RECYCLING

VEGETATION MANAGEMENT

MICROTUNNELLING

MAJOR FEATURES

SPECIAL FOCUS

STORMWATER

SCADA, CONTROL SYSTEMS,

EQUIPMENT & MACHINERY

RENEWABLES

IT AND SOFTWARE

PIPE & CONDUIT

ASSET MANAGEMENT

WASTEWATER TREATMENT

CABLES

RETAIL, BILLING AND CRM

PIPE RELINING

EXCAVATORS

DRAIN CLEANING

VACUUM EXCAVATION AND

WASTE MANAGEMENT

NON-DESTRUCTIVE DIGGING

MAJOR FEATURES

SPECIAL FOCUS

DESALINATION

LAND ACCESS AND

EQUIPMENT & MACHINERY

GAS PIPELINES

RIGHT-OF-WAY

EQUIPMENT RENTAL

SMART GRIDS

TRANSFORMERS AND

ATTACHMENTS AND BUCKETS

ENERGY EFFICIENCY

SUSBSTATIONS

HORIZONTAL DIRECTIONAL

PIPELINE INTEGRITY, COATINGS

DRILLING (HDD)

AUGUST 2015

NOVEMBER 2015

LEAK DETECTION

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Gas meter regulator assembly nearing completion at Comdain’s Engineering & Fabrication facility

“Peace of mind knowing there is real certainty” Comdain is a leading infrastructure design, construction and maintenance services business specialising in the Water, Gas and Irrigation sectors.

We deliver our construction and maintenance services safely with professional excellence and best practice in alignment with our core values. Our focus is to deliver reliable, sustainable complex assets that give our clients peace of mind and certainty that they will operate first time every time as required.

Our capabilities include: Planning & Consultation Design - Concept, detailed and methodology Construction - Pipelines, pump stations, treatment plants, structures, facilities, metering and storages Maintenance - Civil, mechanical and electrical Control & Monitor - SCADA and telemetry We deliver our construction and maintenance services safely with professional excellence and best practice in alignment with our core values.

Intelligent Doers, Dependable Delivery comdaininfrastructure.com.au

Current & Recent projects: South East Water (Vic) Pipes & Structures Program 2013-2018: Panel member (through LD&C joint venture) for the design and construct of South East Water’s Capital Works Program.

Sydney Water Corporation (NSW) Network & Facility Renewals Program: Delivery Contractor Panel member providing design and construction services supporting the delivery of the $800m program.

A Queensland Urban Utilities (QLD): Panel member for the provision of Design and/or Construction of Water and Sewerage Retculation Systems.

APA Group - National Mains Replacement Program 2011-2016 (VIC & QLD): Replacement of low pressure gas mains through insertion of PE pipe and upgrade of high pressure range from 315kPa to 578kPa. Goulburn-Murray Water (VIC) Goulburn Murray Water Connection Project: Managing Contractor role through the TransCom Connect JV responsible for the planning design, scheduling and procurement of services associated with the $2b irrigation modernisation program.

Contact Austeck for an Obligation Free Quote & Demonstration

1800 287 835 A 11/77 Bourke Road, Alexandria NSW 2015

Austeck_CRAWLER DP Spread_July 14_A3 size_2.indd 1

E info@austeck.com

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