Annual General Meeting

21 October 2014

APIA

Annual Report 2013/14 Introduction

During the 2013/14 financial year, APIA has continued to provide the very popular

networking events for members and, on the policy front, we have become a more

active participant in the debate about gas availability. An important part of the

policy proposals has been the need to reduce the focus on constant changes to gas

transmission policy – highlighting the fact that this industry has made genuine

improvements in transparency and efficiency – making the point that pipelines are

not the problem. APIA has put forward suggestions that address gas supply.

APIA has participated, with some success, in government studies and taskforces

and provided submissions to highlight the safety, efficiency and effectiveness of

the nation’s gas transmission industry. We thank the Owner Members for their

commitment to this task.

The networking dinners have had excellent attendance levels. The participants are

supportive and enthusiastic, welcoming to newcomers, and sponsorship of events

is appreciated by both the sponsors and APIA. The Annual Convention and Exhibi-

tion in 2013 in Adelaide was another successful event. The Young Pipeliners Forum

continues to demonstrate that this industry can successfully encourage young peo-

ple to get involved in new initiatives.

APIA’s new Training Adviser quickly took on the task of promoting the Pipeline

Engineer Training Project’s competency standards and working with the Project

Manager to engage the National Engineering Registration Board in progressing the

plans for registration of pipeline engineering. And, in communicating the compe-

tency standards, has also expanded her work to include improving the website and

other APIA communications.

The APIA Board

During 2013/14 the APIA Board met seven times. At the 2013 AGM, Mark Twycross

and Dave Maloney were elected to the Board and Kevin Lester, Shaun Reardon, Jim

Frith, Mark Dayman and Mark Cooper were re-elected. At their meeting held after

the AGM, Mark Dayman was appointed to the position of President, Ashley Kellett

was appointed Vice President and Mark Cooper was appointed to continue his role

as Treasurer. The Secretariat is grateful to the Board Members for their time and

their commitment to the industry and to the Secretariat.

THE APIA BOARD

Mark Dayman (President)

Ashley Kellett (Vice President)

Mark Cooper (Treasurer)

Kevin Lester (Immediate Past President)

Peter Cox

Jim Frith

Brent Jones

Dave Maloney

Shaun Reardon

Mark Twycross

APIA STAFF

Cheryl Cartwright

Steve Dobbie

Steve Davies

Andrew Witheford

Karen Polglaze

Carolyn Murphy

Gisela Thaurer

Katy Whiting

CONGRATULATIONS

Congratulations to those named in the 2013 APIA Annual Awards.:

Most Outstanding Contribution to the Industry: John Fleming

Young Achievement Award: Ian Spence

APIA Safety Award: Nacap

APIA Environment Award: WDS Limited

OPPORTUNITIES FOR YOUNG PEOPLE

Due to timing, scholarships were limited in financial year 2013/14.

However, in the coming year there are several opportunities for young

people to apply for scholarships to attend a number of international

events. These include: the 2014 International Pipeline Conference in

Calgary, the international research JTM in Paris in May 2015 and two young

people to visit Baosteel in China in November 2014. There will be further

opportunities through AGIT, including attendance at the 2015 World Gas

Conference to be held in Paris .

The generous gift of $2000 from long-time supporter Bill Marhofer was

granted to support two APIA young people by paying their air fares to

attend the September AGIT Gas Speak event in Canberra.

APIA MEMBERS

As at 30 June 2014, there

were 541 members,

comprising 298 Corporate

Members, 26 Lead Members

and 5 Owner Members. There

were 61 Individual, 138

Employee and 13 Honorary

Life Members.

APIA is grateful to the

Corporate Members who

have taken the decision to

upgrade to Lead

Membership, further

demonstrating their

commitment to the industry

and APIA:

GD Engineering &

Construction Pty Ltd

NationWide Hire

Murphy Pipe and Civil

Constructions

Australian Truck Hire

Company

CNC Project Management Pty

Ltd

Mears Group Pty Ltd/ Quanta

Services Australia

(BGC Contracting and Aprilla

Grids chose to join APIA at

Lead Member level)

The APIA Board, from left: Mark Twycross, Mark Dayman, Kevin Lester, Mark Cooper, Cheryl

Cartwright, Peter Cox, Steve Dobbie, Ashley Kellett, Shaun Reardon, Brent Jones.

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The Pipeline Engineer Training Project has focused on promoting

awareness among members of the pipeline engineer competency

standards, what they are for and how they can be used to assist in work

processes such as performance assessment, developing project teams, and

career planning.

A range of updates have been made to the website to increase accessibility

and usability of the competency standards. This has included adding a new

advanced search function to make the individual standards searchable by a

range of options, rearranging some of the navigation, rewriting the content

to help users get to what they need more quickly and adding frequently

asked questions.

Face-to-face workshops have been held in financial year 2013/14 and more

are planned. These give members a practical introduction to the

competency standards and how to use the associated tools. The workshops

have been a great success in increasing knowledge and understanding. A

booklet was produced to introduce members to the competency standards

and the core competency standards have been collected into a single

downloadable pdf. The competency standards will become a career record

for pipeline engineers and the booklet has been redesigned to increase

utility.

Development of the competency standards will continue, with two new

completed competency areas introduced in 2014: plastics pipe and

composite pipe. Drafting is continuing in design and construction

competency standards and members in Perth are establishing reference

and drafting groups to develop a large set of competency standards in the

offshore sector. We have also entered into an agreement with the Society

for Underwater Technology’s Perth Branch which is developing competency

standards for the subsea sector. The agreement will enable APIA to share

competency standards and to ensure those developed by APIA and SUT

align as much as possible. APIA and SUT plan to jointly promote awareness

of the competencies and related activities.

The Pipeline Engineering Project Manager and the Training Manager have

redoubled efforts to ensure that APIA’s pipeline engineers can be the first

Australian engineers to become registered in the specific area of Oil and

Gas Pipeline Engineering. This is one of six specific areas recognised by the

National Engineering Registration Board as requiring specific knowledge,

skills and expertise. The first APIA pipeline engineers to be registered will

be members of the Assessment Panel who will assess future applicants.

Assessment is based on the APIA Pipeline Engineer Competency Standards.

Website content and other products have been created to promote

awareness of registration and its advantages.

Vocational education and training is undergoing some big changes as new

government policy is being implemented. The latest version of the National

Gas Training Package has been endorsed, and further development of the

package to make it more relevant to the technical skills required by the

pipeline industry is being planned.

TRAINING

KNOWLEDGEBASE

The search function in the

APIA knowledge base has

been upgraded significantly.

This has enabled the

information which Louise

Burmester has been

cataloguing and uploading

to become much more

easily available. The

knowledgebase is available

in the Members-only

section of the APIA website.

If you can’t find something

you think should be there,

let us know via

training@apia.asn.au

The knowledgebase is a

major reference resource for

the pipeline industry,

collecting knowledge,

experience and lessons

learned over decades. It

contains technical and other

information collected from

seminars and conferences in

the pipeline industry, as well

as working documents from

major projects, over many

decades. It has become an

important reference system

for members working on

projects or who simply have

an interest in the technical

aspects of the industry.

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CONSTRUCTORS

The Contractors Committee

continues to convene each

year at the Annual

Convention. At its Adelaide

meeting in October 2013

issues discussed included

the need to include

construction issues in

research programs; industrial

relations challenges; contract

design and risk management

and the annual safety

statistics for the industry.

Health Safety &

Environment

Committee

Work began on a new guide

outlining best practice for

stakeholder engagement.

The document will be a

valuable tool in

demonstrating the industry’s

commitment to working

with land holders and other

stakeholders to achieve the

best outcomes.

The Fatigue Management

Study, conducted by TMS

Consulting, was completed

and published and APIA has

provided Fatigue

Management Guidelines for

members.

YOUNG PIPELINERS FORUM

The YPF events are broad-ranging:

educational speaker nights,

mentoring and social events. The

social events have included: lawn

bowls, golf, networking drinks and

wine tours. Educational events

include speaker evenings, where

young people grill the invited

expert about their field of expertise,

and visits to members’ facilities.

There has also been mentoring with

APIA Board members after a Board

meeting in the relevant State.

An interesting initiative this year

was a mini Gas Speak building on

the successful Australian Gas

Industry Trust event that provides

guidance on communication and

presentation. This event was

introduced by the Victorian YPF

group.

The YPF movement began with one

Young People’s seminar in 2006.

Now, in 2013/14, these very active

committees have organised a total

of 23 events during the year. That’s

1 in NSW, 1 in NT, 7 in Qld, 4 in

WA, 5 in Vic, 3 in SA and 2 in New

Zealand.

The YPF and the APIA secretariat

would like to thank the APIA

members who have supported YPF

during 2013/14. With this support,

and the fabulous young people

involved, we can see that our

industry’s future is in good hands.

AUSTRALIAN GAS INDUSTRY TRUST

APIA continues to manage the Australian Gas Industry Trust. As AGIT Company Secretary,

Steve Dobbie participates on the National Organising Committee for LNG18, the IGU’s

major international LNG event, being held in Perth in 2016. The AGIT is partnering with

APPEA to host this event . Carolyn Murphy has been appointed joint Company Secretary

of AGIT and she will focus on the day-to-day management of the Trust’s affairs.

AGIT continues to manage the very successful annual Gas Speak event and the 2013

event was no exception with 30 young people coming to Canberra for three days to

develop their public speaking skills.

Through her participation as a director of the AGIT, and AGIT’s membership of the

International Gas Union, the APIA Chief Executive is a member of the IGU’s executive

committee. This committee meets twice a year and, in April 2014, Australia was host for

the meetings in Sydney. With APIA as the part-time secretariat, and assistance from

Conference Coordinators, the Sydney meetings were a great success, with interesting

meetings, an expanded industry/IGU dinner with senior industry people and politicians,

and excellent media coverage. The IGU secretariat has asked the host of the next meeting

– Germany – to adopt some of the initiatives introduced in Sydney. 4

APIA Chief Executive and AGIT director Cheryl Cartwright addressing Industry/IGU dinner

“Ashley Kellett, General Manager of SEA Gas, has provided a valuable link between the

Pipeline Corridor Committee and the APIA Board and Owners Committee.”

The Pipeline Corridor Committee appointed Ashley Kellett, General Manager of

SEA Gas, as chair. Ashley has provided a valuable link to the APIA Board and the

Owners Committee. The committee has met four times over 2013/14 to

progress the appropriate recognition of pipelines in planning regulations .

In December, the committee published a guideline on land use investigations

to help ensure best possible information can inform initial location classification

of a pipeline. The document has been well received and will be referenced in

the next revision of AS 2885.1.

The committee is progressing two major projects. The first is a project to

establish a centralised APIA portal to facilitate the dissemination of pipeline GIS

data to planning stakeholders, creating a one-stop-shop for pipeline GIS data.

The second is aimed at developing a common industry approach to raising

awareness of pipeline measurement length issues, with the ultimate goal the

production of industry informative materials that all pipeline owners and

operators can adapt to their own use.

In October 2013, James Smith

stepped down from the role of Chair

and Michael Peoples assumed the

position for the next two years. POG

participants thanked James for his

vision and drive as he oversaw

increased participation and activity of

POG members.

Under the guidance of both James

and Michael, POG has continued to

flourish, with active sub-committees

and tremendous attendance at the bi

-annual POG meetings.

The POG meetings in 2013/14, held

on the day after the 2013 Annual

Convention and in April 2014, were

well attended. The Seminar’s theme

was Best Practices Maintenance and

Building a Workforce for the Future

and included a presentation by the

Victorian regulator examining the

management of encroachment issues

around pipeline easements from a

regulator’s perspective. Other

presentations covered trainee

programs for operators and relevant

research by the Energy Pipelines CRC.

These meetings demonstrate the

excellent cooperation among APIA

members who debate and discuss

issues of mutual concern, focusing on

safer and more efficient operations of

Australia’s high-pressure transmission

pipelines.

POG continues the enhancement of

the Incident Database reporting

system. This is now available through

an online reporting system accessed

through the POG section on the APIA

website and hosted and managed by

APIA member, Mipela.

POG, with guidance from the Chair,

maintains oversight of APIA’s

involvement in the Federal

Government’s Energy Security Group,

which focuses on critical

infrastructure around the nation.

PIPELINE CORRIDOR COMMITTEE

PIPELINE OPERATORS GROUP

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CLIMATE CHANGE

The change of Government at the

2013 Federal Election brought a

change in approach to climate

change policy. As well as

introducing legislation to repeal

the fixed price on carbon (the

“Carbon Tax”) and the planned

Emissions Trading Scheme (ETS),

and advisory/regulatory bodies

linked to the programs, the new

Coalition Government began

consultations on its Direct Action

Plan, which is designed to replace

the ETS, and stakeholders were

asked to comment on a

centrepiece Emissions Reduction

Fund (ERF).

Through this scheme companies

would bid for the funding and

the Government would provide

the funds to the most cost-

efficient reduction process. The

Palmer United Party, which holds

the balance of power in the

Senate, opposes the ERF, and

supports the introduction of an

ETS in the future with the carbon

price set at zero until other major

economies also have such

schemes.

The Government established a

Review of the Renewable Energy

Target (RET), which was

established to mandate a

proportion energy generation

investment in both large and

small scale renewable energy. The

Opposition and crossbench

parties in the Senate remain

opposed to any change to the

Scheme.

APIA has actively participated in

the development of the Direct

Action Plan and Renewable

Energy Target Review. APIA has

consistently supported a

technology-neutral emissions

reduction policy for the electricity

generation sector. The

Government’s Energy White

Paper, which will set the strategic

direction of the Government in

this sector for the remainder of

this parliamentary term, is

expected to be released by the

end of this year.

Gas policy and market development have continued to be a major

focus for energy policy makers over the year, driven by the gas supply

tightness being experienced in the east coast.

In 2013, the long-running initiative to develop new methods of

determining tariffs for regulated energy infrastructure was completed.

The Australian Energy Regulator published its Rate of Return Guideline

in December 2013 and APIA continued to push the regulator to move

toward a genuinely new approach that considered a broad range of

evidence. While the regulator was not ultimately comfortable making a

large shift, the reform process has created change and it is likely

improvements will continue to be made over time.

A major ongoing reform focus has been pipeline capacity trading. APIA

has worked closely with the Federal Government over the year and

made many comprehensive submissions on the subject. Through

lobbying and engagement with APIA, policy makers have agreed to the

incremental change of increased information, a low-cost alternative

that will increase transparency and will make trades easier for parties

that wish to do so. The Government’s process is continuing into the

year ahead.

Concurrent with the Government’s capacity trading process, the Energy

Policy Committee facilitated an industry-led process to develop a new

service to improve capacity trading: operational capacity transfers. The

Committee published a guideline to ensure all companies can offer the

new service in a consistent manner. Operational capacity transfers offer

significant efficiency improvements over the existing model of bare

capacity transfers and were developed in close consultation with

pipeline shippers.

Building on the APIA 2013 policy document Gas Supply for Australia,

the Energy Policy Committee has been developing policy reform

options to increase the supply of gas to domestic users, including an

increase in wholesale gas competition, particularly through an increase

in the number of suppliers, which would be very beneficial to the

domestic market. This proposal has generated interest in the gas

industry.

The Federal Government published its Eastern Australian Domestic Gas

Market Study at the beginning of 2014, outlining a range of potential

future policy reforms that could improve domestic gas markets. These

are being considered as part of the Government’s Energy White Paper

process and APIA is highly engaged, advocating the need for policy to

increase gas supply.

ENERGY POLICY COMMITTEE

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The APIA Research and Standards

Committee held three meetings

during financial year 2013/14. Mark

Fothergill is chair and Richard

McDonough is deputy.

This financial year, personnel from

the more than 50 APIA RSC

members contributed thousands of

in-kind hours of work, including

contributions as industry advisers,

and to the research teams on

critical research for the pipeline

industry. The research is available

to RSC members.

RSC members provide essential

input to generating ideas for and

developing research projects

undertaken by the Energy Pipelines

Cooperative Research Centre.

The CRC program is a Federal

Government initiative designed to

encourage industry and academia

to work together on important

research. Government funding

assists the process and industry

sectors compete to attract the

Government support.

EPCRC Chief Executive Officer,

Professor Valerie Linton, and the

EPCRC staff are located at the

University of Wollongong. EPCRC

researchers also work with the

Adelaide and Deakin Universities

and the ANU, with funding

assistance from the Federal

Government.

The Energy Pipelines CRC focuses

its research on the following areas:

More efficient use of

materials for energy

pipelines,

Extension of safe operating

life of new and existing

energy pipelines,

Advanced design and

construction of energy

pipelines

Public safety and security

of supply of energy

pipelines.

The RSC has also continued to work

with and share research outcomes

with the Pipeline Research Council

International (based in the US) and

the European Pipeline Research

Group.

The RSC June meeting was held in

conjunction with the Energy

Pipelines CRC seminar and dinner

held in Wollongong.

The dinner attracted many young

people and all were entertained

and informed by a presentation by

Leigh Fletcher, a former Chair of the

RSC and current Energy Pipelines

CRC Director, about his reflections

on pipeline challenges

ENERGY PIPELINES

COOPERATIVE RESEARCH CENTRE

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APIA OWNER MEMBERS

APA Group

Jemena

SEA Gas

Dampier Bunbury

Pipeline

Epic Energy SA

APIA EVENTS

During 2013/14, APIA conducted 22 lunches and dinners and two seminars: the

annual POG seminar and the Brisbane seminar which is now chaired by the

Health, Safety and Environment Committee chair, Mark Twycross.

The numbers in Brisbane remain the highest for our dinners and lunches, often

with more than 400 registrations. There is strong attendance in the other States,

often with around 110 in Adelaide, 200 in Melbourne and 140 in Perth. Sydney

usually now attracts more than 80 participants. Darwin also remains popular. At

the Brisbane and Melbourne Christmas lunches in December 2013 APIA, after

positive feedback from the previous year, provided professional entertainment.

Once again, through popular demand, a dinner was held in New Zealand, with

the Kiwi members keen for this to continue each year and for APIA to explore

other function opportunities in NZ.

The WA seminar has changed to reflect the changing requirements in the West.

In the past year, a series of informal technical evenings have replaced the

annual seminar and they proved popular and are to be continued. The WA

chapter also replaced the Annual Ball with a “normal” APIA dinner this year and

the numbers attending were up on previous years so this is encouraging.

The Brisbane Seminar in 2014 continued as a product of cooperation between

the secretariat and the HSE Committee chair and, again, was another success so

the intention is for this event to continue to be an HSE seminar for the

foreseeable future.

The POG seminar continued its successful formula with another strong event

held in Sydney in April 2014.

Maintain a viable Association with an active membership

Be the advocate for the industry

Maintain research & development and knowledge transfer

programs that assist in the efficient and safe design, construction,

operation and maintenance of pipelines

Assist the industry to maintain its leadership in the management of

the environment, health and safety

APIA’s objectives Strategic Plan

The Strategic Plan was

reviewed in 2012. After a

comprehensive and

facilitated discussion, the

objectives were compressed

to four main focus areas. A

copy of the Strategic Plan is

available on the APIA

website.

The Strategic Plan confirms

the commitment of APIA to

enhancing the Australian

pipeline industry and

working for members.

All income received by APIA is invested in the

Association and its activities for the benefit of the