Page 13 - Gi flipbook September 2018

Australia needs a greater
AUSTRALIA diversity of gas suppliers
Gas supplies safe for

2019, watchdog says MARK WASSELL

AUSTRALIA’S As well, the federal
COMPETITION watchdog government’s October 2017 “International LNG prices “There’s been some
says there will be enough deal with LNG producers to are volatile and domestic significant progress in the
gas to supply households limit exports in the case of a prices might increase to gas market, but it’s still got
and business in 2019, but still domestic shortfall has helped. reflect recent expectations of some distance to travel,”
has concerns about prices. The ACCC said domestic higher Asian LNG spot prices.” Mr Morrison told reporters
In September 2017, the price offers had “reduced The market needed in Melbourne.
Australia Competition and substantially”. more supply and a greater Labor’s Energy
Consumer Commission But commercial and diversity of suppliers, a Spokesman Mark Butler said
raised fears about a possible industrial gas users were better transport network the gas crisis was not over.
shortfall in supply, which “still finding market and greater transparency. “When Malcolm Turnbull
it warned could further lift conditions extremely Treasurer Scott Morrison had the chance to take
prices and create problems challenging as gas prices said the report included real action to tackle the
for business and industry. remain at two to three times some encouraging news gas crisis and impose
But in its latest report, higher than historical levels”. on prices and supply, but export controls, he instead
the ACCC said lower “With production costs “risks remain”. chose an unenforceable
consumption by gas- increasing and gas prices The risks included not handshake agreement with
powered generators, higher in the East Coast Gas being able to accurately the big gas exporters,” Mr
production in Victoria and Market being shaped by forecast demand for gas by Butler said.
the expected start of flows international LNG prices, electricity generators and “The gas crisis isn’t over,
from the Northern Territory domestic prices are unlikely continuing restrictions in Australian manufacturers are
will ease pressure on to return to historical some states on some types paying the cost, and workers
supplies in 2019. levels,” the report said. of gas development. will pay the price.” ■

IRELAND September due to the The operating procedure
fault. The affected gas that covered the reboot
Investigation reveals system was redirected back to the of the terminal failed to

upgrade caused odourless refinery in Bellanaboy and include a step requiring
the operator to reset the
flared off to remove it from
gas to enter public supply the system. odorant injection system.
Gas is naturally odourless
The report notes that
but a smell is added for the energy regulator
safety purposes so people took enforcement actions
AN UPGRADE TO the supply, an investigation by can detect it in the event of against both SEPIL and Gas
computer system at the state’s energy regulator a leak, reports The Journal.ie. Networks Ireland following
the Corrib gas refinery has found. A report published by the its investigation.
in Ireland’s County Around 10,000 homes Commission for Regulation CRU found that
Mayo accidentally led and businesses had of Utilities (CRU) found that deficiencies in SEPIL’s
to odourless gas being to switch off their gas there was no additional risk operating procedures led to
pumped into the general supply for three days last of a gas escape due to the the incident.
fault, however, as the gas It directed SEPIL to
SHELL Inside the Bellanboy terminal was not odorised it would submit an improvement plan
to address the problems.
not have been possible to
detect an escape by smell The remedial actions set out
had one occurred. in that plan have been put in
The problem was place and the enforcement
identified by Shell E&P action against SEPIL has
Ireland (SEPIL) during been closed.
checks at the terminal. The The regulator also found
IT system upgrades caused deficiencies with Gas
the odorant injection Networks Ireland compliance
system to default to a relating to odorant
mode where there was no injection and issued it with
injection of odorant. improvement notices. ■

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News.indd 8 14/08/2018 20:00