Mr WOOD - 2008-02-13
It is my understanding that Channel Island Power Station is using considerable volumes of diesel because of problems with an inadequate supply of gas. Can you please say how much diesel fuel has been used by the Channel Island Power Station so far this financial year and what is the dollar value of that fuel? How much diesel was budgeted for the same period, and the dollar value of that estimate? When can a constant and adequate supply of gas be guaranteed to run the power house without the need for diesel?
ANSWER
Madam Speaker, I thank the member for his question. As the member knows, the Channel Island Power Station is designed to run on both gas and diesel. Gas is predominantly used because it is the most cost-effective and less greenhouse gases emits to the atmosphere. However, with the decline in gas from the Central Australian gas fields, in the peak demand period there is not enough gas pressure to supply all generator units and we have to use diesel in some of them. About 50% of the total fuel in these peak time periods is diesel.
The total diesel use from 1 July 2007 to 31 January this year was 10.8 million litres used at a cost of $9.4m. However, that cost is offset by the gas we do not buy for the generators. Power and Water has budgeted $2.8m for diesel but, as I explained before, because they do not use gas this offsets the cost of diesel.
In the future, we will be using diesel in peak time periods only and Power and Water will absorb that cost. Gas in the Territory will come from the Blacktip gas field in 2009. I am very pleased to say that APT is the company that will construct the pipeline – 290 km of coated pipe. Alcan operations will supply the pipeline. The pipeline started arriving in Darwin in late December. ENI has now awarded all major contracts for the construction of the onshore gas plants and some of these big modules will be arriving in Wadeye in April/May 2008. We are on track to deliver gas in 2009 and, when gas comes from Blacktip in 2009, there will be no more need for additional diesel to be used.
ANSWER
Madam Speaker, I thank the member for his question. As the member knows, the Channel Island Power Station is designed to run on both gas and diesel. Gas is predominantly used because it is the most cost-effective and less greenhouse gases emits to the atmosphere. However, with the decline in gas from the Central Australian gas fields, in the peak demand period there is not enough gas pressure to supply all generator units and we have to use diesel in some of them. About 50% of the total fuel in these peak time periods is diesel.
The total diesel use from 1 July 2007 to 31 January this year was 10.8 million litres used at a cost of $9.4m. However, that cost is offset by the gas we do not buy for the generators. Power and Water has budgeted $2.8m for diesel but, as I explained before, because they do not use gas this offsets the cost of diesel.
In the future, we will be using diesel in peak time periods only and Power and Water will absorb that cost. Gas in the Territory will come from the Blacktip gas field in 2009. I am very pleased to say that APT is the company that will construct the pipeline – 290 km of coated pipe. Alcan operations will supply the pipeline. The pipeline started arriving in Darwin in late December. ENI has now awarded all major contracts for the construction of the onshore gas plants and some of these big modules will be arriving in Wadeye in April/May 2008. We are on track to deliver gas in 2009 and, when gas comes from Blacktip in 2009, there will be no more need for additional diesel to be used.
Last updated: 09 Aug 2016