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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-09-24 Daily Xml
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ENERGY PIPELINES CRC

The Hon. CARMEL ZOLLO (15:18): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about Energy Pipelines CRC.

Leave granted.

The Hon. CARMEL ZOLLO: The federal Minister for Innovation, Industry, Science and Research, Senator Kim Carr, recently announced funding of $243 million for world-class collaborative research and innovation under the Australian government's Cooperative Research Centres (CRC) program. Of this total, $17.5 million was provided to establish a CRC in energy pipelines that will enable Australia to meet the increased demand for gas transportation arising from the need to decrease greenhouse gas emissions. The research providers undertaking the work of Energy Pipelines CRC include the University of Adelaide. Will the minister please outline the role that the university will play in this important research work?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:19): First, I would like to acknowledge the support of the federal government in this important area of research. I think that needs to be acknowledged. Indeed, initiated by the Hawke Labor government in 1990, the CRC program is a frontrunner in establishing long-term collaborative research partnerships. Energy Pipelines CRC, to which the honourable member referred, was established in the latest round of funding. It will undertake research and provide education and training in four programs covering the technology required to:

extend the safe operating life of Australia's ageing natural gas transmission network, avoiding the need for replacement;

build the new pipeline networks needed to support increased demand for natural gas;

build the new pipeline networks that will enable the transmission of new energy cycle fluids, such as hydrogen and carbon dioxide; and

prevent pipeline failures that could lead to consequential costs and harm to public health and safety, and other infrastructure.

These activities will result in cheaper, safer and more efficient pipelines that will provide more competitive energy costs and security of supply of energy. Large cost savings will arise from limiting or deferring capital expenditure arising from the life extension program.

The University of Adelaide will take active part in all four of the research programs supported by the federal government funding announced by Senator Carr. The outcomes of Research Program 4 will include recommendations to the industry and to state technical regulators on measures for the prevention of pipeline failures. This will be of particular interest and benefit to PIRSA's Petroleum and Geothermal Group.

Australia has about 30,000 kilometres of high pressure natural gas transmission pipelines, with a replacement cost of about $40 billion. The energy supplied by these pipelines has a value of $12 billion, is about 22 per cent of Australia's energy needs and is more than the combined output of all electricity generators in Australia. The Australian energy pipeline industry is facing some fundamental challenges as Australia's energy pipeline network is ageing, with a majority of pipelines serving capital cities aged between 30 and 40 years old. These pipelines require refurbishment to avoid replacement at high cost.

The Australian pipeline environment is unique, so that pipeline technology cannot be easily imported from international sources. Australia's domestic economic performance and international competitiveness depends on continued efficient and safe operations of energy pipelines. Australian energy pipelines are being encroached upon by the growth of capital cities into corridors that were formerly rural. The industry is experiencing an engineering skill shortage, and new needs in energy pipelines are required in the transition to a cleaner, renewable future.

So, I am delighted that the University of Adelaide will have a leading role in pipeline infrastructure research that is crucial to the safe and efficient transport of both petroleum and greenhouse gases from source to storage sites in Australia and overseas. I am also delighted that PIRSA will provide in-kind support for this important research.

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