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Epic expansion to transport QLD CSG

Epic Energy completed an expansion of its South West Queensland Pipeline (SWQP) earlier this year, with the construction of the 180 km QSN Link. However, increased activity at Queensland’s coal seam gas fields has necessitated a further capacity expansion of the pipeline.

The recently completed QSN Link extended the SWQP length to 935 kilometres and enabled the pipeline’s connection to Epic’s Moomba to Adelaide Pipeline and APA Group’s Moomba to Sydney Pipeline.

Epic announced in June that it had signed a conditional long term Gas Transmission Agreement with Origin Energy to underpin the proposed Stage 3 expansion of the SWQP.

Stage 3 involves the construction of a new 935 km pipeline adjacent to the existing SWQP. This looping would increase the SWQP daily capacity from 168 terajoules per day (TJ/d) to approximately 380 TJ/d.

The project is subject to securing funding for the development.

Epic Managing Director Steve Banning said “We are exploring various options to secure the funding for this significant project by the fourth quarter of this year.”?

Looping in the works

A considerable amount of the front-end engineering and design (FEED) has already been completed and Epic is ready to commence a detailed design as soon as funding has been secured.

Given that the new pipeline will be constructed mainly within the existing SWQP easements, the impact on landowners and the environment along the route is expected to be minimal.

Epic has already commenced the process of contacting and liaising with landowners regarding the construction activities and this will continue right through the project.

In addition to the landowner liaison activities, Epic is in discussions with the cultural heritage claimant groups along the pipeline to obtain cultural heritage clearance for the project and pipeline route.

The new 450 mm diameter pipeline will be connected to the existing SWQP approximately every 200 km, at existing scraper station compounds and, once operational, the two pipelines will be operated as one.

Some minor modifications at the existing mid-line compressor station at Cooladdi, additional compression equipment at Wallumbilla, and an expansion of the Moomba meter station will be required to accommodate the higher flows.

In order to obtain construction cost certainty for the project, Epic has entered into contracts with steel suppliers and a construction contractor for the looping project. Nacap was engaged under an early contractor involvement process to assist with the development and optimisation of the project, and has since been awarded the contract to construct the new pipeline.

Given the length of the pipeline, the logistics of transporting pipe to the right of way has been a major consideration in the steel procurement process. Moreover, the quantity of pipe required meant that not all of it could be supplied by Australian mills within the required timeframe, hence there will be a mix of Australian and overseas pipe.

At this stage, construction is expected to commence in June 2010 and continue through to the end of 2011.

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