Economic

The SEA Gas Pipeline is not a “covered pipeline” under the National Gas Law but like all gas transmission and gas distribution pipelines in Australia, it is subject to the Law, Rules and Regulations. The National Gas Law is administered by the Australian Energy Regulator (AER).

Technical

SEA Gas is subject to licence conditions and regulatory requirements throughout Victoria and South Australia and is audited by the regulatory authorities.

The South Australian section of the pipeline is governed by Pipeline Licence Number 13, in accordance with the Petroleum and Geothermal Energy Act 2000. This Act covers upstream petroleum and geothermal activities (exploration and production), gas storage, construction and operation of high pressure transmission pipelines. Objectives of the Act include protection of the environment, public health and safety and security of natural gas supply. The pipeline is regulated by the Department of Primary Industries and Resources South Australia (PIRSA).

SEA Gas operates the Victorian section of the pipeline under Pipeline Licence 239, in accordance with the Pipelines Act 2005. This Act covers all aspects of pipeline licensing and construction for onshore transmission pipelines including access to land, safety and environmental issues. The pipeline is regulated by the Victorian Department of Primary Industries (DPI) and the SEA Gas Safety and Operating Plan (Safety Case) is subject to periodic auditing by Energy Safe Victoria (ESV) and environmental auditing by the Department of Sustainability and Environment (DSE).

The governing legislation requires that the SEA Gas Pipeline complies with Australian Standard AS 2885. This standard covers the design, construction, operation and maintenance of high pressure gas and liquid petroleum pipelines. It mandates a robust Safety Management Study is maintained for pipelines to manage all potential threats to pipeline integrity. The most significant threat to the pipeline integrity is external interference and unauthorised activity on the pipeline easement.

In order to assure safe operations and public safety both the Petroleum and Geothermal Act 2000 and the Pipelines Act 2005 prohibit third parties from interfering with pipeline operations. Substantial fines can be imposed where an unauthorised third party interferes with or damages a pipeline.

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