Operator & Industry Structure

The Technical Regulator is responsible for overseeing the natural gas transmission and distribution reticulation pipeline network.

Gas is supplied from the Moomba plant in the State's north and Katnook in the South East. The Technical Regulator monitors gas supplies to ensure that gas is available in required quantities and quality for the metropolitan and regional distribution networks and for general use in gas appliances.

The Technical Regulator also monitors the planning, construction and maintenance of distribution networks to ensure that they are safe and can meet the needs of gas consumers.
 
With nearly 7000 kilometres of pipelines located beneath the streets and footpaths of Adelaide and country towns, it is imperative that they meet acceptable standards.

The Gas Act 1997 and associated Regulations define the technical and safety standards for all gas entities. These standards also call up Australian Standards, industry codes, or Australian Gas Association (AGA) codes.

South Australia's principal source of natural gas is the Cooper Basin. Gas from the Santos processing plant at Moomba is transported via Epic Energy's Moomba to Adelaide transmission pipeline (MAP) to the metropolitan and major regional areas. Epic Energy also owns the transmission pipeline supplying natural gas to Mount Gambier from the Katnook gas field. Envestra owns the Riverland transmission pipeline from Angaston to Berri (which continues to Mildura in Victoria) with a spur-line to Murray Bridge. The capacity of the MAP was increased during the year to meet contractual obligations for the supply of gas to the new Pelican Point power station.

Around sixty percent of the natural gas supplied to the metropolitan area is used for electricity generation at the Torrens Island power station, Pelican Point power station and a cogeneration power station at Osborne. The remainder is distributed through a network owned by Envestra and sold to households and businesses by Origin Energy which is a licensed retailer. A small amount of gas is sold by AGL to individual industrial customers. Terra Gas Trader is another licensed retailer which supplies gas to power stations.

The small gas field at Katnook has been developed by Origin Energy Resources. Origin Energy is the retailer in Mount Gambier, using the distribution network owned by Envestra.

During the year there were no shortfalls of gas supply to the distribution system due to the lack of transmission pipeline capacity or production capacity. However, there were several minor interruptions to supply.

The regulation of networks is important to ensure that they are planned, installed, maintained and operated in a satisfactory manner. For example:

• If there are insufficient gas mains planned, gas outages could occur because of system overload. If a gas cooker is being used and not switched off when the outage occurs, the kitchen could fill with gas when supply is restored.
• If gas mains are not installed or maintained properly, there is a possibility of such pipelines leaking or even rupturing. Such an event could cause harm to the environment or property or even injury.

Because these pipelines are located under the streets and footpaths of metropolitan Adelaide and some country towns it is imperative that they operate safely. In order to establish whether or not the network is being constructed and maintained safely, Standards are used and must be complied with. These Standards are based on national and international experience and the best practices of gas network operators and experts in particular fields. The Technical Regulator monitors work on the gas distribution system to ensure it complies with these Standards.