Woodside seeking permission to conduct seismic testing for oil and gas in Vic’s Port Campbell area: 23 threatened species potentially affected

Woodside Energy wanted to conduct a new round of seismic testing for oil and gas off Victoria’s Port Campbell, potentially disrupting the feeding season of the endangered blue whale, wrote Ewin Hannan in The Australian (8/10/2007, p. 4). Testing period would coincide with peak abundance of whales: Woodside had applied to the Howard Government to undertake the testing between November and May 2008, a period coinciding with the peak abundance of blue whales in the region. The survey area was about 20km south of Port Campbell, the coastal town west of the giant rock stacks known as the Twelve Apostles. Peter Gill, a long-time blue whale researcher, had said the survey area lay well within the blue whale feeding area. “If the survey occurs during the blue whale feeding season, and the whales are usually present between November and May, it is possible that blue whales may be displaced from preferred feeding areas,” he had said.

Survey needed to map sub-surface geology: In its application to the federal Environment Department, Woodside had said the survey was designed to map the sub-surface geology and ascertain the potential of sub-surface oil and gas deposits for further investigation. A survey vessel would operate an airgun that released bursts of compressed air that pushed the water away, creating a pressure wave that was used as a seismic signal. The survey would involve 23 days of testing.

‘Temporary’ displacement of whales: As the holder of a petroleum permit, Woodside had said it was required to undertake exploration to deduce the area’s potential for oil and gas production. In its submission Woodside acknowledged that 23 species listed as threatened under federal environmental legislation might occur within, or travel through, the project area. They included three species of whale, the great white shark, 12 albatross species, and the critically endangered orange-bellied parrot. “There may be some temporary displacement of (whales) as a result of the seismic survey and localised impacts on feeding behaviour,” Woodside had said in its submission.

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Regional groups can develop biodiesel industry in their local community: “starting block” for sustainable industry

A new report has found that by working together to refine oil crops specifically grown for on-farm fuel supplies, regional groups could develop an economically sustainable biodiesel industry in their local community, reported Farm Weekly (27/9/2007, p.20).

Week ahead for Victoria: mild weather, possible high gas demand Monday 15 October

Why Brisbane gas prices are low: Wood Mackenzie explains

A report prepared for the Owen Inquiry by Wood Mackenzie Wood explained why gas prices in NSW and South Australia were higher than the gas prices in Melbourne and Brisbane. Mackenzie’s gas price outlook was based on an assumption that rational economic investment decisions would be made based on cost and price.

Gippsland Basin oil: deposits $300bn in Fed Govt coffers over 40yrs; ExxonMobil confident much more to come

In the 40 years since the discovery of oil in Bass Strait, the Gippsland Basin operation has deposited $300 billion (in today’s money values) in Federal Government coffers, according to independent model­ling – and there was a lot more to come, wrote Keith Orchison in The Australian (29/9/2007, p.9).

Lakes Oil seeking $9.3 million in 1¢ shares to prove a commercial oil or gas find in Latrobe Valley region

Hardy oil and gas explorer Lakes Oil had gone to its shareholders seeking $9.3 million from a non-renounceable rights issue priced at the princely sum of 1¢ a share, reported The Age (21/8/2007, p. 83).

Multinet proposal to supply natural gas to towns in South Gippsland, Vic: $54.7m cost

A Multinet proposal related to providing natural gas to a group of regional towns in the South Gippsland area, including Lang Lang, Korumburra, Leongatha, Inverloch, and Wonthaggi, noted an Essential Services Commission statement (18/7/2007).

Australian Paper argues against GasNet’s proposed price increases; points the finger at gas-fired thermal power stations

Australian Paper argued in a submission to the Australian Energy Regulator (AER) on 29 June 2007 that its current level of gas consumption did not warrant GasNet’s introduction of price increases to the magnitude proposed.

PEG concerns with WP gas benchmarking: allowed cost instead of actual data; “comparing oranges to tangerines”

The Essential Services Commission (ESC) was undertaking a gas access arrangement review (GAAR) for the three gas distribution businesses (GDBs) serving Victoria (Multinet, SPAusnet, and Envestra), noted PEG partner Larry Kaufmann’s response to Worley Parsons Benchmarking Analysis, Victoria (July 2007).

SP AusNet, Envestra related-company contracts not acceptable for regulated cost as inter-company billing not tested by tender

In the Gas Access Arrangement Review 2008-2012, The Victorian Essential Services Commission, Draft Decision, 28 August 2007 explained why the Commission may not be able to accept a contract payment as evidence of the prudent and efficient costs of providing services as SP AusNet and Envestra had achieved significant reductions in expenditure in 2005 which continued into 2006.

Draft decision by ESC to cut amount Victorian gas suppliers can charge for distribution of natural gas: 10 per cent cut on distribution

A draft decision by the Essential Services Commission (ESC), to cut the amount gas suppliers charge for the distribution of natural gas would reduce average distribution charges by more than 10 per cent, will put some downward pressure on gas bills. The cost of distributing gas represents around 40 per cent of a customer’s gas bill.

Some households not connected to mains gas before end of winter: extend bottled LPG and/or non-mains-metered power rebate, says Victorian MP

Although mains gas supply had been extended to a number of towns in her electorate, it was critical that households not connected before the end of winter continue to receive the rebate for bottled LPG and/or non-mains-metered power, said Joanne Duncan in the Victorian Legislative Assembly on 22 August 2007.

$10 per week to fuel scooter, compared with an adult weekly zone 1 Metcard at $27.60

Motor scooter sales are soaring, with Victorian Automobile Chamber of Commerce figures showing a 40 per cent rise in sales in the year to June compared with the same time last year reported The Age (18/7/2007, p. 3).

Vic SOG officers wary of forced-entry raid that led to shooting death, coroner hears

Special Operations Group police officers involved in a dawn raid on a Brooklyn house in 2005 expressed misgivings about the operation before a man was fatally shot in the house, a court heard, reported The Age (13/9/2007, p.9).

Vic regulator bans too-clever management fees: investigates SP AusNet’s payments-spaghetti, and refuses SPIMS fee paid to Singapore Power

In a frightener to the clever “management fees” model so popular with boom-market listings the Essential Services Commission has refused to accept an SP-Ausnet fees model. It made an adjustment to the SP AusNet cost benchmarks to remove an amount representing the allocation of part of the SPIMS payment to SPL to the SPI Gas business.

Consumers should not underwrite GasNet’s commercial credit risks; lack of planning report for Carisbrook Loop augmentation equals lack of GasNet support

TRUenergy had asked the Australian Energy Regulator’s (AER)  to get Victorian transmission provider, GasNet’s capital expenditure forecast justified and supported by expansion studies completed by VENCorp. TRUenergy  objected to a GasNet  plan to pass through any debts incurred by defaulting shippers, and other clauses.

Greenpower merges Planet Gas and European Gas’ seven CSM tenements in Victoria, NSW, SA and WA

Still on coal seam gas, Greenpower was passing the hat for $6-10 million to explore across seven tenements in Victoria, NSW, SA and WA, reported The Australian (14/9/07, p. 25).

Prior to SEAGas, MAPS fully contracted, with no spare capacity at peak times: lack of pipeline capacity forces peaking units onto liquid fuels, says NEMMCO report

Utilising slightly higher priced gas prices in neighbouring zones may well be preferable to seeking low gas prices only to find the station having to run on liquid fuels due to pipeline capacity constraints. Prior to the SEAGas development, MAPS was fully contracted, with virtually no spare capacity available at peak times. This forced peaking units on to liquid fuels more often than not. Peaking stations generally did not reserve firm pipeline capacity, but instead relied on interruptible services with resort to liquid fuels if adequate pipeline capacity was not available when needed, noted ‘Fuel resource, new entry and generation costs in the NEM’, a report to NEMMCO by ACIL Tasman (27/3/2007).

Origin plans 1,000MW CCGT plant at Mortlake, Vic: gas cost at $3.23/GJ

Origin Energy was proposing to construct up to 1,000MW gas powered base/intermediate load plant at Mortlake in Western Victoria, according to ‘Fuel resource, new entry and generation costs in the NEM’, a report to NEMMCO by ACIL Tasman (27/3/2007).

Victoria’s three main gas distribution businesses, Multinet, Envestra and SP AusNet subject to Draft Decision from January 2008

A Draft Decision, which will be finalised in November, would apply from January 2008 to Victoria’s three main gas distribution businesses, Multinet, Envestra and SP AusNet, according to a media release by the Victorian Minister for Energy and Resources.

Regulator determines balance: The Gas Access Arrangements Review occured every five years, when gas distributors made submissions to the regulator about their expected revenues, the release said. The regulator then determined average distribution charges that fairly balanced consumer and industry needs, and maintained returns that allow further capital investment.

Drought affects industry: The Minister stressed that the energy industry continued to be hit by the current drought, which had pushed up the wholesale costs of gas and electricity. He said demand for gas increased because gas-fired electricity generation was substituting for reduced hydro and coal-fired electricity generation, due to water shortages caused by drought. Gas was an effective but more expensive form of electricity generation, the Minister said.

Reference: Media release from the Minister for Energy & Resources, Victoria, 28 August 2007. Contact: Dan Ward. Phone: (03) 9651 5799. Mobile: 0407 138 680. Website:
http://www.vic.gov.au

Erisk Net, 28/8/2007

Residents of Rockbank in Victoria want natural gas

Don Nardella introduced a petition by residents of Rockbank to the Victorian Legislative Assembly on 22 August 2007.

Significant cost reductions: The petition called for natural gas to be installed in order that residents and local businesses in the Rockbank and surrounding areas could access natural gas supplies. Thanking members of the Rockbank action group for their hard work in organising this petition and bringing it to the house, Nardella said: “The provision of this infrastructure would then make gas readily available and reduce significantly the cost of this important energy resource.”

Reference: Don Nardella, Member for Melton, Legislative Assembly, Victoria, 22 August 2007.