OPERATIONS

Moomba gas back to normal by weekend

Santos has been busy behind the scenes after its disastrous Moomba Gas Plant explosion with gas s...

Moomba gas back to normal by weekend

The resumption of supply will also see the end of higher tariffs for delivering gas to industry in Sydney and Adelaide. Primary NSW supplier AGL had been forced to import gas at higher prices from Esso-BHP Billiton's Gippsland fields to meet customer demand.

Under the terms of its commercial contracts, higher supply and transport costs were passed through to commercial and industrial customers. AGL is also expected to seek to recover higher costs in supplying residential customers in NSW and the ACT from the NSW Independent Pricing and Regulatory Tribunal.

However, the company said supplies were expected to increase to about 550 terajoules per day (TJ/d) by next weekend, well above the historic summer demand from Moomba of around 400-450 TJ/d.

The 550 TJ/d compares with daily Moomba output of 400-450 TJ/d previously forecast under Stage 3 of the restoration of supply schedule.

It more than doubles the 200 TJ/d currently supplied from Moomba in recent weeks under Stages 1 and 2 of the schedule to return Moomba to full operations.

"Moomba's imminent return to normal sales gas supply is one to two weeks ahead of our previous estimate," said Santos' managing director, John Ellice-Flint.

"The achievement of daily supplies of about 550TJ should eliminate any gas supply concerns for consumers in South Australia and New South Wales," Mr Ellice-Flint said.

"This reflects the success of the ongoing efforts of Santos employees and contractors to repair the plant while maximising supply through undamaged sections," Mr Ellice-Flint said.

"Stage 3 also represents the first time we have been able to process gas through repaired sections of the plant damaged in the New Year's Day incident.

"This includes bringing the gas chilling circuit back into service -- a significant milestone in Moomba resuming normal operations."

Ellice-Flint also announced today that work was well advanced on the longer-term Stage 4 repair schedule, designed to bring Moomba's potential output to about 650 TJ/d.

"More than six kilometres of new cabling has been installed since New Year's Day, more than 60 valves inspected, some 20 valves - each weighing up to half a tonne - removed and sent offsite for repair, and specialist instrumentation and other material flown in from the United States and United Kingdom.

"This has involved dedicated direct airfreight services to Moomba to keep the repair schedule on track, and significant support and round-the-clock effort from everyone involved."

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