Telfer Gas Pipeline map

EII Gas Transmission Services WA (Operations) Pty Limited (EII) owns the Telfer Gas Pipeline and Nifty Gas Lateral.

Description

The 443-kilometre Telfer Gas Pipeline (TGP) is a transmission pipeline connecting to the Pilbara Pipeline System at the Boodarie offtake at Port Hedland and delivering gas to the Telfer gold-copper mine in the East Pilbara Region of Western Australia and the Nifty Gas Lateral.

The 45-kilometre Nifty Gas Lateral (NGL) is a transmission pipeline that connects to the TGP and delivers gas to the Nifty Copper Mine 350 kilometres east of Port Hedland.

A diagram of the TGP 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 in EII 19.9%
Regulatory Status

The TGP and NGL are non-scheme pipelines.

The NGL has been granted an exemption from reporting requirements under Part 23 of the National Gas Rules as it is a single shipper pipeline.

Capacity and Services

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

  • Firm transport.
  • Interruptible transport.

A description of these services, including the APA Standard Gas Transportation Agreement (SGTA) can be found on the gas transmission services page. Further contract terms relevant to the TGP are set out here.

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.

Until the Foundation Shipper Agreement expires or is terminated, EII is unable to offer services that extend beyond 22 October 2028.

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

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 TGP and NGL are prescribed clause 1 pipelines under the Gas Supply (Gas Quality Specifications) Regulations 2010.

The reference specifications for the TGP and NGL are set out in clause 1 of Schedule 2 to the Regulations.

EII 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

EII has minimum credit support requirements that are a pre-condition to gaining access to pipeline services. 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 (on behalf of EII) when considering their gas supply and transport needs. Early discussion of needs improves the likelihood that APA (on behalf of EII) can tailor services to meet customer requirements.

Formal Access Request

Potential customers do not have to submit a Formal Access Request to gain access to the Telfer Gas Pipeline or the Nifty Gas Lateral. If you are interested in acquiring services for these pipelines, you can contact us at the contact details above to discuss your requirements.

For 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 EII and the potential customer. Details are in the User Access Guide.

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

EII Financial Information Disclosure – Part 23 National Gas Rules

EII is reporting financial information for the Telfer Gas Pipeline. 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 ERA recovered capital method (RCM).

Interested parties should read the Basis of Preparation together with the completed financial information template that was developed by the ERA.

In addition, EII 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
TGP 2018 Part 23 Financial Reporting