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Course Outline

  Introduction to gas pipelines Download Course Brochure
  • The history of the Australian gas pipeline industry
  • Ownership structures
  • Regulatory arrangements
  • Construction methods
  • Australian gas supply and demand
  • Gas pipeline development prospects

Pipeline fundamentals

  An understanding of technical fundamentals of high pressure gas pipeline design is a necessary precursor to review of pipeline sizing, optimisation and tariff setting:
  • The determinants of pipeline capacity
  • Operating pressure considerations
  • The role of compression and/or looping
  • The impact of supplier and customer requirements

Pipeline sizing


Pipeline configuration and sizing alternatives will be addressed as well as the impact of technical regulatory requirements.


Examining pipeline costs

  Current pipeline capital and O&M cost factors will be reviewed:
  • Recent capital cost experiences
  • Linepipe, construction and other cost factors
  • Useful operating cost estimates

Pipeline development and contracting risks

  • Identifying risk
  • Assessing risk
  • Production, transportation and market risks
  • Development risks and alliance contracting
  • Risk mitigation

Unit cost of gas transport


This session will focus on the actual cost of transporting gas through a pipeline, specifically how to determine costs managing all of the risks and influencing factors.


Designing tariffs - alternative tariff structures will be reviewed and compared

  • Capex, opex and indexation
  • Capacity versus throughput
  • Risk management
  • Market development impacts
  • Other pipeline related services

Gas transportation contracting

  • Contract structure overview
  • Capacity commitments (DCQ, MDQ, MHQ, etc.)
  • Reliability, interruptibility and priorities
  • Tariffs and indexation
  • Gas balancing obligations
  • Other services
  • Force majeure
  • Contract renegotiation
  • Risk sharing

The Australian pipeline regulatory framework

  • Regulated and unregulated pipelines and the impact of regulation
  • Capital base for tariff setting purposes
  • Market related impacts, including pipeline expansion
  • Allowable rates of return
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