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Case Study

Western Australia continuity modelling

Perth Western Australia

In 2008, an explosion at the Varanus Island gas processing facility crippled Western Australia’s gas market, disrupting almost one third of the State’s domestic gas supplies for several months afterwards. We provided and analysis to ensure disruptions of this extent does not happen again.

The situation

Western Australia is home to Australia’s largest domestic gas market – equal in size to the combined gas markets of New South Wales and Victoria. In 2008, an explosion at the Varanus Island gas processing facility crippled Western Australia’s gas market, disrupting almost one third of the State’s domestic gas supplies for several months afterwards.

As part of a Government taskforce, Advisian provided an analysis of the State’s entire supply and demand chain in the report Options to Avoid or Minimise Gas Supply Disruptions and to Mitigate their Effect. The report analysed gas production, transportation and end users, the electricity market, and the effects of a range of major gas supply disruption scenarios.

Our approach

We also worked to develop and cost several mitigation strategies, assessing impacts during both winter and summer, and identified the most cost-effective methods to mitigate the effect of gas supply disruptions to end users.

To facilitate the analysis, we developed a comprehensive model of the State’s gas and electricity markets which allowed for a qualitative and quantitative assessment of disruption impacts and mitigation strategies.

Results

Our model identified several practical and cost-effective strategies to eliminate disruptions including use of the underground Mondarra gas storage reservoir, interconnection of existing pipelines, and conversion of existing gas fuelled power generation unit to allow diesel to be substituted for gas.

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