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ONSHORE PIPELINES AND DISTRIBUTION SYSTEMSDistribution PlanningAs countries develop, their energy demands change.During early infrastructure development, emphasis is oftenplaced on requirement for reliable electrical powergeneration. Hence natural gas, is transported viatransmission systems to power generators in countrieswhere it is available.As a countrys energy needs develop to meet therequirements of environmental control and quality of lifeissues, the requirement for natural gas distribution to alarge number of smaller users becomes evident.

CHALLENGESThe roll out of gas distribution frequently presents complex challenges.Distribution to domestic and commercial consumers is typicallyundertaken after the majority of other utilities have already beeninstalled.

PlanningThe planning for gas distribution requires an understanding of customerdemand and specific locations of major or potential consumers. Theextent of the roll out needs to be considered as it is uneconomical to rollout in sparcly populated areas. The existence and offset of alreadyinstalled infrastructure needs to be investigated and allowance made forthe new gas distribution system.

ApprovalsConsents for the distribution network can sometimes be difficult withapprovals being required from municipal, federal and nationalauthorities, statutory bodies, environmental agencies and otherstakeholders.

ConstructionConstruction of distribution networks, is usually difficult, as it needs tobe done in built up areas, hence there are issues of permits andconsents, traffic management and maintaining access to existingpremises to be considered. Risk and safety assessments during thedesign phase of the network will facilitate construction and ongoingmaintenance.

ConversionWhere existing towns gas systems exist, conversion of existing systemsand consumers appliances, needs to be undertaken as part of theproject and specialist expertise is required to undertake this work.

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CAPABILITYJ P Kenny typically undertakes the following steps duringgas distribution planning:

Estimate Market Size

Estimate present market size, and anticipated marketgrowth, take up of natural gas by conversion and newbusinesses attracted by the availability of natural gas, todetermine peak flows the daily load swing and seasonal

load variation needs to be determined.

Conceptual Distribution Network

Once the market loads have been determined it ispossible to develop a network model using a steady statesoftware package. The networks technical parametersincluding design standards, design pressures, pipingmaterials, pressure control devices, metering, SystemControl and Data Acquisition (SCADA) and billing need tobe defined.

Capital and Operational Expenditure

The capital and operating costs would be developed forthe distribution system asset base of:

Transmission pipeline off-take station, custodytransfer metering, gas odourisation, gas pressurereduction, and SCADA / communications systems.

The distribution network piping (and valving forsystem sectioning), taking gas from the off-takestations, to all areas.

All customer connection service and meteringinstallations to supply domestic, commercialconsumers and industrial consumers.

Control room / system control for safe operation ofthe network, software packages, data / reportingsystems, customer data bases and billing software.

Develop Financial Model

Using the gas purchase price, the sales tariff andestimates of load factor, a financial model can beprepared.

The following factors need to be taken into consideration:

Number of customers at each year end fordomestic, commercial and industrial sectors

Annual gas consumption Gas tariffs Revenue Capital expenditure Depreciation of assets Operational costs Financial methods Typical company accounting requirements

EXPERIENCERecent J P Kenny has undertaken numerousdistribution planning projects. These include:

Bellarine Peninsula

The natural gas distribution roll out to the BellarinePeninsula is a TXU Networks project. J P Kennywas commissioning by TXU to undertake thedetailed design, prepare risk and safetyassessments and obtain all necessary approvals

and planning permits. The project had over100,000m of distribution main, supplying over20,000 consumers.

Bombala/Cooma

When the Eastern Gas Pipeline (EGP) wasinstalled in Australia, JP Kenny was commissionedby Great Southern Energy to undertake theplanning / design of the gas distribution to townsclose to the pipeline. Bombala and Cooma eachhad over 100,000m of distribution mains, operatingat 400kPa.

Delhi

In a response to rising pollution and green housegases in densely populated Indian cities, the

Government of India, approved funds for anin depth feasibility study to determine theeconomics of introducing natural gas into DelhiIndia. The results of the study indicated that naturalgas was a viable proposition.

Following the acceptance of the feasibility study,JP Kenny was awarded the detailed engineering ofPhase 1 of Delhi. This involved the design of over1,800,000m of distribution main, supplying over600,000 consumers.

Dubai

As part of the development of Dubai, Emirates Gascommissioned J P Kenny to undertake marketstudies, conceptual engineering and economicanalyses to evaluate the potential for theconstruction of a gas distribution network within the

Emirate.

J P Kenny examined the existing market, projectedmarket growth and developed a technicalexecution plan. Projected costs were entered intoan economic model to predict operating companyperformance and identify a gas tariff structure,which was used to validate/update predictions onmarket share, take up and market growth tocomplete the projected operating companybusiness plan.

Vietnam Pipeline System Master Plan

J P Kenny were contracted by PetrovietnamEngineering Company to develop a Master Planreport for the development of a pipeline networksystem in the South of Vietnam to transport bothassociated and non-associated gas from offshore

Vietnam from 2003 to 2022.

J P Kenny reviewed and updated proven andunproved reserves, Carried out analysis of systemdemand requirements, developed a network plan and undertook extensive system hydraulic modelling, develop cost estimates including system transporttariffs for the developed options.

Pipeline facilities underconstruction.

J P Kenny undertook thefeasibility study anddetailed design of thedistribution network inDelhi, India

Pipeline facilities allowingthe safe operation of thedistribution network.

A cross country distributionsupply main, underconstruction.

Palm Island off the Cost ofDubai.

The Master Plan dealt withdevelopment of gasdistribution systems aroundHo Chi Minh City, Vietnam.

J P Kennys computer modelling of a gas network, takinginto consideration peak hour flows and line pack.

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J P Kenny is a Wood Group company . Wood group is an international energy services company with more than $2.8bn sales, employing more than 16,000 people worldwide andoperating in 40 countries. Strategic partners within Wood Group include: Alliance Engineering, Frontier Engineering Solutions, Ionik Consulting and Mustang Engineering.