Queensland Gas Pipeline

Asset Overview

The Queensland Gas Pipeline or QGP is a natural gas and coal seam gas transmission pipeline which links both the Ballera to Roma pipeline (owned by Epic Energy) and the Roma to Brisbane pipeline, owned by APA, at Wallumbilla to large industrial users in Gladstone and Rockhampton.  Coal seam gas enters the pipeline from gas fields along its route and the natural gas is sourced from the Surat and Cooper Basins.  The main pipeline was constructed in 1989 by the Queensland State government and commissioned in 1990.

Prior to the introduction of the Natural Gas Law, the QGP was subject to the terms and conditions of access arrangements approved by the ACCC, under which third parties had access. Firm forward haulage agreements entered into under the terms of the access arrangements were subject to a tariff cap which steps down if total firm forward gas throughput moves above 25 PJ on an annualised basis.  Many of these contracts terminate in 2016. 

Under Queensland derogation, the QGP is currently exempt from any coverage application under the Natural Gas Law for 3 years from 1 July 2008 and will thereafter be uncovered, subject to there being no successful application for coverage.

Capacity

The 627 kilometre pipeline is a free flow high pressure pipeline with a current capacity of approximately 30 PJ per annum. The pipeline has the potential to be expanded via compression and looping up to its current licence limit of 52 PJ per annum at which time a higher licence limit would need to be requested. It has a design life of 50 years and a remaining life of 30 years.

The capacity of the QGP is being expanded from 30 PJ per annum to up to 52 PJ per annum.   The expansion is expected to reach practical completion by April 2010.