Project background
Why do you want to build a pipeline?
The Queensland Hunter Gas Pipeline (QHGP) project will deliver an alternative natural gas supply to the Hunter region by providing the conduit connecting the gas transmission grid between Queensland and NSW. The significant Bowen and Surat Basin coal seam gas reserves in both Queensland and northern NSW will provide an alternate gas source to ensure greater security for natural gas supply to the region. The pipeline also aims to increase competition within the NSW natural gas market.
The pipeline will give NSW direct access to the rapidly expanding Queensland gas fields and encourages exploration and development of gas fields in regional NSW.
Who is funding the project?
The Queensland Hunter Gas Pipeline is being funded by Hunter Gas Pipeline Pty Ltd. This is a joint venture between three leading NSW based gas users in NSW and an infrastructure planning consultancy in Queensland. These include:
Duncan J Hardie (Hardie Holdings) – Chairman.
Garbis Simonian (Weston Aluminium) – Managing Director.
Hilton Grugeon (Hunter Lands) – Director.
Ross Skerman (RLMS – Queensland) – Director.
The primary project objective is to deliver reliable and competitively priced gas to the Hunter region of NSW.
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Planning approval
Who is the approval authority?
Under the provisions of the Environmental Planning and Assessment Act 1979, the NSW Department of Planning is the approving authority for the NSW section of the pipeline (approval has already been given for the Queensland section of the pipeline). The project is involved, crossing a state boundary, a number of rivers, existing infrastructure and numerous landholdings.
How will the planning process work?
The project will be assessed under Part 3A of the Environmental Planning and Assessment Act 1979.
Interaction with other key government, regulatory and community stakeholders will play an important part in the process to ensure all relevant issues are considered as part of the environmental assessments.
Will the Commonwealth be informed and involved in the approval?
Yes. The Commonwealth Department of the Environment and Water Resources (DEW) will be made aware of the project through a formalised referral process, under the provisions of the Environment Protection Biodiversity Conservation Act 1999. The DEW will consider the project to determine if it is likely to have a significant impact on matters of national environmental significance. This includes a consideration of potential impacts on areas such as World Heritage properties, national heritage places, wetlands of international importance (Ramsar Wetlands), listed threatened species, ecological communities and migratory species. It is likely that any requirements of DEW will be incorporated into the environmental assessment requirements at the Project Application environmental assessment stage.
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Specifics about the pipeline
When will the pipeline be built?
It is anticipated that construction will start in late 2009, subject to approvals. Gas flow is expected to commence in the first quarter of 2011.
How much will it cost?
The total construction cost is expected to be around $800 million.
How long will the pipeline be?
The pipeline will be around 820km long with 222km in Queensland and the balance in NSW.
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About the pipeline route
Where is the Study Area?
The Study Area starts at Wallumbilla in Queensland (450km west of Brisbane), it crosses the Queensland/NSW border near Boomi, and continues in a southeasterly direction to Newcastle. The major towns that Study Area passes include Surat (Queensland), Boomi (just south of border crossing), Moree, Narrabri, Boggabri, Gunnedah, Quirindi, Murrurundi, Scone, Muswellbrook, Singleton, Maitland and terminating in Newcastle.
Have you selected the preferred route for the pipeline?
At this stage of the project the final pipeline route is still being confirmed. Start and end points have been identified and a number of routes considered. A 200m wide Study Area has been identified for further research.
The Study Area will be subject to a comprehensive assessment process from environmental studies to stakeholder negotiations.
How was the Study Area chosen?
The Study Area has been carefully selected to minimise impacts on the natural and built environment and local communities. Issues that have been taken into account include:
- The topography and geology along the alignment.
- Existing land use.
- Minimising impact on flora and fauna, in particular endangered ecological communities.
- Avoiding urban areas.
- Minimising the number of affected landowners.
- Minimising the impact on indigenous and non-indigenous heritage.
- Minimising impacts on agriculture and mining.
- Minimising the number of creek and river crossings.
- Minimising the number of road crossings.
- Avoiding interference with existing utilities
How wide is the Study Area?
The Study Area is currently about 200 metres wide, however through consultation with affected stakeholders including landowners, environment bodies, Aboriginal communities, local councils and others, we are refining this Study Area to a target 30 metres in width, which will then be known as the pipeline route or ROW alignment.
Is everyone living in the Study Area affected?
No. When the Study Area has been refined through the social and environmental assessment work, the only land required will be 30 metres in width. Initially, all landholders within the Study Area will be notified of the pipeline. Then further discussions with landholders will be undertaken with those who own land within the final 30m ROW alignment to select the final route.
Is the pipeline above ground?
No. The pipeline will be buried for its entire length. Factors such as the depth to which it is buried are controlled by Australian Standard 2885 and vary depending upon the land use, soil type, and the presence of rock.
Once the pipeline is completed above ground facilities such as isolation valves, meters, scraper stations, cathodic protection pest posts and other safety features will be the only pieces of infrastructure located on the surface. Line of sight markers will also be clearly visible on the pipeline easement.
How big will the pipeline be?
The pipeline will have an external diameter of up to 500mm.
Can gas pipelines leak or break? Is there any danger of explosions?
Transportation of natural gas through a pipeline is a very safe way of transporting energy because the infrastructure is fixed and located underground.
Gas pipelines are checked regularly to make sure they are structurally sound. This is done both through visual inspections on the surface and by use of special equipment known as ‘pigs’. Pigs (thought to have been given this name because they make a squealing sound) are devices that move through pipelines to clean and inspect them. They are used to test for pipe thickness and roundness, identify signs of corrosion and find tiny leaks so that they can be repaired.
Pipelines are well marked to show their location so that machinery operators will avoid them.
How will you construct the pipeline?
Pipeline construction typically takes place in the following stages:
- Environmentally sensitive areas, identified through the impact assessment process, are marked in the field.
- The path of the pipeline is cleared of obstacles such as boulders, shrubs and trees to allow the construction equipment access to the site.
- Topsoil is scraped from the construction area and stockpiled for use during reinstatement.
- The sections of pipe are laid out end to end along the ROW.
- Trenches are dug next to the laid out pipe.
- The sections of the pipe are welded together. Some sections may need to be bent slightly to fit the path of the pipeline.
- The welded string of pipe is lowered into the trench.
- The trench is filled in carefully to make sure the pipeline is not damaged.
- The pipeline is tested using water under very high pressure to make sure there are no leaks or cracks. The water pressure is higher than what will eventually be used to transport the gas to ensure that the pipe can withstand the necessary pressure.
- Different methods such as boring or open cutting may need to be used for crossing waterways or roads.
- Once the pipeline has been buried the disturbed land is rehabilitated, replanted if necessary, and returned to a condition as close as possible to its original state.
How much land will the pipeline require?
During the pipeline’s construction phase, a corridor of around 30 metres in width will be used. Additional areas of up to 50 metres in width will be required at intervals along the ROW for soil storage (particularly near watercourses) and for truck turn around areas. These will be agreed with landowners as required.
The proponent will be seeking a 30-metre easement from the landowner for the life of the project. The easement allows for the installation and management of the pipeline. Whilst there will be some restrictions on activities within the easement (eg. deep digging, erection of structures) most land uses, particularly agricultural ones, are able to continue over the easement.
What will be the visual impact of the pipeline?
Once the pipeline has been completed the only visible impact will be isolation valves, scraper stations and marker posts.
Isolation valves are a safety device installed to enable rapid isolation and shutdown of sections of the pipeline whilst scraper stations are used to launch and receive equipment for cleaning and monitoring the inside of
the pipeline.
Marker posts are about 1.2m high and installed to warn people of the presence of the pipeline. They are located at crossing points of all fence lines, watercourses, roads, powerlines and railway lines and at other locations so that they can be clearly be seen.
How will the pipeline be maintained?
There are a number of measures that will be put in place to ensure that the pipeline is protected and maintained. The pipeline will be:
- Identified by warning markers to prevent damage by third party operators such as excavators.
- Protected and monitored to prevent corrosion damage.
- Patrolled routinely from the ground and air.
- Maintained and operated in compliance with a specific safety and operating plan (SAOP).
Will flooding affect the pipeline or compromise its integrity undergound?
It is possible that the pipeline route may be located within a flood-affected area. Protection measures will be installed during construction, including for example, rock protection over the pipe in a streambed to prevent potential scouring during flood conditions or concrete coating to weight the pipeline to prevent flotation. In addition to regular inspection trips, specific inspections will be carried out after heavy rainfall or flash flooding to ensure that the structural integrity of the pipeline is maintained.
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About the gas
Where will the gas come from?
Gas for the Queensland Hunter Gas Pipeline will initially be extracted from Surat and Bowen basins in Queensland. The proposed pipeline route has been selected to provide opportunities for transport of emerging coal seam gas reserves in regional NSW.
Where will the gas be delivered?
Initially, the gas will be delivered via the pipeline to the Hunter Region for power generation and industry usage. Potential connection points (off takes) may also be built into the pipeline at construction, or added to the pipeline system during operation. This however is dependant on future market opportunities.
How much gas will the pipeline carry?
Initially the pipeline will carry 60 petajoules (PJ) per annum with the possibility of increasing to 120PJ or more.
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About natural gas
What is natural gas?
Natural gas is a fossil fuel that is formed when organic material, such as plants and animals, are subjected to extreme heat and pressure over thousands of years. Natural gas, comprised mainly of methane, also contains a variety of other compounds, gases, oils and water that need to be removed before the gas can be used.
Natural gas reserves are often in the same location as coal or oil reserves. In most natural gas reservoirs the gas is trapped in the void spaces of rocks such as sandstone. Coal seam gas is usually trapped on the surfaces of the coal and held in place by water and pressure – the gas is removed before mining and used in the mine or sold or alternatively released as the coal is mined. Alternately, for deeper coal seams, such as in southern central Queensland and regional NSW, the gas is recovered by drilling into these seams – producing the adsorbed water and releasing the gas. Coal seam gas typically contains less other compounds than conventional natural gas and requires little or no processing before use.
How is gas used to generate electricity?
The purified gas is transported through pipelines to end-users where it is combusted (burned) to generate electricity, heat homes or provide energy feedstock for industrial processes. The main by-products are carbon dioxide and water vapour.
What else can natural gas be used for?
As well as generating electricity, natural gas can be delivered to homes and businesses where it can be used for cooking and heating and can be used as a feed stock for a number of manufacturing processes such as fertilisers and petrochemicals.
What areas of Australia produce natural gas?
The traditional areas for on-shore domestic gas production in Australia are the central desert regions of NE South Australia and SW Queensland. These areas service the high-pressure conventional gas streams piped into Adelaide and Sydney from the early seventies. The Roma area in Queensland (adjacent to where this pipeline starts) provided the earliest gas in Australia via a pipeline to Brisbane, which is now approaching 40 years old. Bass Strait, between Victoria and Tasmania, delivers gas to Melbourne from the Gippsland and Otway Basins. In the past ten years both Adelaide and Sydney markets have been connected to this region by similar high-pressure transmission gas grids.
Western Australia’s domestic gas is provided in the main by gas fields to the north of Perth. Offshore WA, the North West Shelf region extending from Broome to Darwin hosts some of the most prolific (and remote) gas provinces on the planet. Australia is a world leader in gas production and gas technology.
Closer to this proposal to ship gas from the Queensland coal seam methane fields there are significant gas reserves in northern NSW extending down to the Hunter Valley. This pipeline will provide a vital conduit for that gas to reach the industrial hub of NSW. In their own right the Sydney, Newcastle and Wollongong areas are home to large coal reserves and are potentially a source of coal seam gas.
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Project benefits
How many jobs will be created by the pipeline project?
It is anticipated that there would be up to 600 jobs during construction and around 25 direct jobs once the pipeline is operational. The majority of these jobs would be highly specialised and would be undertaken by experienced pipeline workers with specific skills.
The overall investment in the pipeline project is about $1billion. This will result in around $600 million of direct investment into NSW. There is likely to be much greater economic benefit realised from the expansion of industry and job creation throughout the region.
What are the benefits of the pipeline for industry in the Hunter Region?
This pipeline will create greater supply security and cost-competitive gas to industry in the Hunter region. This will greatly assist local industries that rely on gas and energy supply. Possible developments include the expansion of aluminium smelting and the construction of gas-fired power stations.
What are the benefits of the pipeline for the local community?
There will be short term jobs and expenditures generated during the pipeline construction. Over the longer term, there are likely to be more jobs created as industries develop as a result of access to a new energy source. Industries, for example, might include aluminium smelting and power generation. There is also the potential flow-on effect to local businesses to support the workers and operations of these growing industries.
Will gas be cheaper for consumers?
The Queensland Hunter Gas Pipeline aims to make the NSW gas market more competitive. By importing gas from QLD more efficiently, opening up the possibility of gas production within NSW and ensuring a choice of suppliers, it is likely gas prices may become cheaper and more secure for end-users over time.
How does natural gas compare to coal fired electricity generation?
One of the benefits of using natural gas to generate electricity is that it is a cleaner fuel because it produces 30 percent less greenhouse gases and pollutants than coal.
Coal contains more carbon, nitrogen and sulphur than natural gas. This means that when it is combusted coal releases higher amounts of carbon emissions, nitrogen oxides and sulphur dioxide as well as ash particles. Combustion of natural gas releases very small amounts of sulphur dioxide, nitrogen oxides, virtually no ash and lower levels of carbon dioxide and carbon monoxide.
Natural gas combustion produces about 56 per cent of the carbon dioxide emissions of coal combustion for the same energy output. When compared to a coal-fired power station, an 800MW gas fired power station would reduce the emission of carbon dioxide emissions by 3 million tonnes per annum.
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Impacts of construction
How long will the construction take on my land?
Each crew works at about 3–4km each day depending on the terrain (ie if there are more trees or the ground is very rocky progress may be slower). To enable the crews to work safely and efficiently, there is often a delay between the arrival dates of each crew. Typically it would take about 12 weeks for all the crews to pass through an area and complete their tasks (ie from the land clearing crew through to the finish of reinstatement).
Can I use my land afterwards or is it permanently lost to me?
Queensland Hunter Gas Pipeline will only be seeking an easement over the land. This means that ownership of the land remains with the landowner. The proponent will however have rights over what can be done on the easement. For operational safety reasons, restrictions would apply to prevent building over the area, limiting activities that require deep digging or ploughing, impounding water and limiting growing trees over the pipeline.
All other activities (eg grazing, routine cultivation and general agriculture) can be carried out on the land once construction is complete.
What if my current agricultural practices require digging or ploughing to greater than 300mm?
In these cases the pipeline may be buried to a greater depth to allow the existing practices to continue. This would be negotiated with the landowner during the easement acquisition process.
How will I be compensated for the acquisition of land for the easement and for any loss of productivity during construction?
The proponent will have Land Agents working in the area who will contact all potentially affected landowners. The Land Agents will discuss the project needs and negotiate appropriate routes, easement and construction compensation with the landowner/holder. The proponent will use the services of a third party valuation firm to determine appropriate compensation offers to affected landowners in relation to the acquisition of
the easement.
What can I expect to happen during the construction phase?
During construction you can expect:
- An intermittent increase in traffic in the area.
- Potential alterations to speed limits in proximity to construction activities.
- Construction activity in phases over about 3 months.
- Moving equipment and machinery.
What job opportunities will there be during construction or operation of the pipeline?
Highly skilled work crews who specialise in welding and testing of high-pressure transmission pipeline construction will be employed. However other activities such as land preparation, vehicle supply and maintenance, food supply and cleaning services are typically sourced locally.
The operational workforce for a pipeline is quite small but there may be opportunities for skilled workers such as mechanics and technicians in monitoring and maintaining the pipeline and its facilities.
Will gas be available for use by local residents?
The pipeline is a high-pressure transmission pipeline to transport gas from one location to another. Distribution of gas to residential users would take place through specialist providers where local councils and industries identify a feasible market. This is yet to be determined for regional locations and does not form part of the proponent’s plans.
How can I get more information or meet with a project representative?
If your land is directly affected by the proposed route you will be personally contacted by the project team to discuss any potential impacts. If you are interested in more general information you can contact the project team through the following means.
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