Parmelia Gas Pipeline

 

Description

The 416-kilometre (mainline) Parmelia Gas Pipeline (PGP) is a transmission pipeline that transports gas from the Perth Basin gas fields near Dongara (south of Geraldton), the Carnarvon Basin (via the Dampier to Bunbury Natural Gas Pipeline) and APA’s Mondarra Gas Storage Facility. It also interconnects with the ATCO Gas distribution network in the Perth metropolitan area. The PGP has a mix of network, retail, electricity generation, as well as oil and aluminium refinery customers in the Perth area and the south west of Western Australia.

The 1.4-kilometre Kwinana Supply Lateral delivers gas to customers in the Kwinana industrial area south of Perth. Various other single user gas laterals also connect to the PGP.

A diagram of the PGP and interconnected laterals can be found here, showing:

  • Pipeline capacities.
  • Details of receipt and delivery points.
  • Key facilities connected to the pipelines.
  • Technical and physical characteristics of the pipelines.
APA Ownership

100%

Regulatory Status

The PGP and interconnected laterals are non-scheme pipelines.

The Kwinana Supply Lateral has been granted a category 3 exemption (average throughput less than 10TJ/day) from aspects of Part 23 information disclosure.

The other laterals have been granted category 2 exemptions (single user pipelines) under Part 23 of the National Gas Rules.

Capacity and Services

The following standard services are offered on the PGP, subject to available capacity:

  • Firm transport.
  • Interruptible transport.
  • In pipe trade.

A description of these services, including the APA Standard Gas Transportation Agreement (SGTA) can be found on the gas transmission services page.

Relevant tariffs for these standard services can be found on the current tariffs and terms page.

Non-standard services or alternative terms may be available by negotiation.

Notes on services

Firm services are available over varying terms as set out on the gas transmission services page.

Interruptible services are only available while the pipeline is fully contracted in respect of the corresponding firm service.

APA is progressively rolling out In pipe trade service capability on all key pipelines. APA will prioritise this service rollout in accordance with shipper demand.

Service Usage Information

Service usage information report

Service Availability Information

36-month uncontracted capacity outlook
12-month capacity outlook

Policies, Procedures and Requirements

Metering and Measurement

Metering and Measurement obligations are outlined in the SGTA (West) and for this pipeline are set out here.

Gas Specification

In Western Australia, transmission pipeline gas specifications are governed by state legislation – the Gas Supply (Gas Quality Specifications) Act 2009 (2009 Act) – and by regulations made under that Act. The 2009 Act provides for a Western Australian standard specification, which is set out in the regulations (with some variations for particular pipelines), and a reference specification for each pipeline. These specifications are necessary for the operation of the scheme of the legislation.

The standard gas quality specifications for the PGP and Kwinana Supply Lateral are set out in clause 2 of Schedule 1 to the Western Australian Gas Supply (Gas Quality Specifications) Regulations 2010.

The reference specifications for the PGP and Kwinana Supply Lateral are set out in clause 2 of Schedule 2 to the Regulations.

APA will measure and/or monitor gas quality in accordance with relevant obligations under contract. Quality obligations are outlined in the SGTA (West) and the 2009 Act and underlying regulations, where applicable.

Credit support

APA has minimum credit support requirements that are a pre-condition to gaining access to pipeline services. APA’s credit support requirements are set out here.

Contact

If you are interested in acquiring gas transmission services for this pipeline, you can contact us on 08 6189 4300 to discuss your requirements. Alternatively, you may wish to make an enquiry by emailing us at commercial.contracts@apa.com.au.

We encourage potential customers to contact APA early when considering their gas supply and transport needs. Early discussion of needs improves the likelihood that APA can tailor services to meet them.

Formal Access Request

Potential customers do not have to submit a Formal Access Request to gain access to an APA pipeline. If you are interested in acquiring services for this pipeline, you can contact us at the contact details above to discuss your requirements.

For APA's non-scheme pipelines, you have a right to make a Formal Access Request pursuant to Rule 559 of the National Gas Rules. Lodging a Formal Access Request triggers a formal process of Access Offer and information exchange between APA and the potential customer. Details are in APA's User Access Guide.

You can make a Formal Access Request by completing in-full the relevant User Access Request Form for this pipeline and emailing it to useraccessrequest@apa.com.au.

APA Financial Information Disclosure – Part 23 National Gas Rules

APA is reporting financial information for its non-scheme pipelines — that is, pipelines that are not subject to full or light regulation. The financial information includes Pipeline Statements for the 6-month period ended 30 June 2018, the weighted average price for services on each of these pipelines, and the number derived using the AER recovered capital method (RCM). 

Interested parties should read APA’s Basis of Preparation together with the completed financial information template that was developed by the AER.

In addition, APA advises in relation to RCM:

  1. The assumed initial capital structure is 40% equity and 60% debt. The level of equity will increase in circumstances where there is a shortfall in annual revenue.
  2. The return on equity is a commercial return applicable in a workably competitive market. Currently, this return for an established pipeline is in the range of 9-11%, depending on factors such as risk, terms and counterparty.
  3. The cost of debt is based on a 10-year rolling average of a market rate applicable for an entity whose business is solely the ownership and operatorship of the particular pipeline.

Basis of Preparation
PGP 2018 Part 23 Financial Reporting