OPERATIONS

Corrosion cuts SA gas processing plant's reputation

The reputation of the Santos-operated Moomba gas-processing plant in South Australia took another hit this week after corrosion was found in a crucial section of pipework, which led to natural gas supplies for the Adelaide market being severely curtailed.

The corroded pipe was repaired and gas supplies have returned to normal, according to Santos. The SA Energy Minister, Mr Wayne Mathews, issued restriction notices to major industries including the State's electricity generator and the Port Stanvac oil refinery as a precautionary measure to direct gas to areas "of maximum benefit".

South Australia relies almost entirely on the Moomba plant for gas however Duke Energy and Origin Energy are each planning high-pressure gas pipeline projects into the state from Victoria. Origin Energy said the South Australian government has already granted it a Pipeline Licence to bring gas from Victoria to Adelaide.

Many commentators fear the incident could see SA face a disastrous security of supply problems similar to those faced by Victoria after the fatal 1995 Longford gas plant explosion.

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