Project LISA (LPG into South Australia)

Quarantine Power Station Dual Fuel Flexibility

Nigel Jones – Head of LPG Trading and Shipping

Quarantine Power Station

Origin’s existing generation fleet capacity is 6266 MW.

Quarantine Power Station (QPS) is located in South Australia.

Generation capacity is 228MW.

Station comprises of 5 units:

QPS 1-4 4 x 25MW

QPS 5 128MW
Total 228MW

The station uses natural gas from MAP and Seagas pipelines.

The cost of supply for natural gas comprises of pipeline access

fees as well as on shore natural gas storage fees to third party
providers.

2 25 June 2018 Project LISA

Quarantine Power Station

The location of QPS along an accessible and commercially used

waterway allows for a unique opportunity to ask the following
question:

“Can you supply LPG as a fuel to QPS to provide an

alternative that makes commercial sense?”

In order to do this, the following issues need to be addressed:

➢ Can the generation asset use LPG as a fuel?

➢ How will you transport, store and feed LPG to QPS?
➢ Will you receive the required approvals from the
government, regulators and port authorities?
➢ Is it commercially viable?

3 25 June 2018 Project LISA

QPS#5

QPS is a 128MW General Electric Frame 9E.

General Electric to be engaged to determine the unit’s suitability for

dual fuel capability.

Whilst this particular unit had not been converted, similar model
types have been upgraded to dual fuel usage.

Consequently it was determined a high likelihood exists to modify

QPS#5.

When the unit running at full capacity the LPG fuel consumption rate
is estimated to be 30 tonnes an hour.

Options may exist regarding QPS 1-4 however project scope limited
to QPS#5 to prove the concept.

4 25 June 2018 Project LISA

LPG Supply Chain

Options considered included:

✓ traditional line haul and land based storage

✓ seaborne transport and storage

The land based option was discounted due to:

➢ lack of room on the site for storage tanks

➢ number or trucks movements required to meet possible demand
➢ the associated line haul safety and environmental risks
➢ supply chain risk due to smaller more frequent movements

A seaborne model was assessed as more viable and robust but not without its issues:

➢ how to store the LPG

➢ permanency required in a well used shipping lane and recreational waterway
➢ likelihood of Development Approval (DA) given marine and environmental impact of possible dredging, spoil disposal and install
of dolphin moorings
➢ regulatory grey areas between maritime or shore jurisdictions
➢ operability of model

5 25 June 2018 Project LISA

Proposed Engineering Solution

QPS#5 converted to dual fuel use.

Floating storage barge built to store 3kt of LPG

Storage of 13,000 MWh (electricity equivalent) or

4.5 days of baseload generation of 128MW.

Submersible line and onshore piping connecting

barge to a vaporising unit to feed QPS#5.

Floating storage to be supplied using Origin small

gas carrier fleet and existing supply points.

Minimal dredging required to allow floating storage

and ship ingress and egress.

Solution will provide increased energy security to

South Australia.

6 25 June 2018 Project LISA

Truck vs Ship

7 25 June 2018 Project LISA

Visualisation

Before

After

8 25 June 2018 Project LISA

Current Status

➢ Flinders Port have been engaged and supportive of the project.

➢ Australian Maritime Safety Authority engaged.

➢ Safework SA engaged and they will assess MHF licencing application.

➢ Presented to the South Australia State Commission Assessment Panel (SCAP).

➢ SCAP will be recommending project approval to the South Australian Energy Minister with final DA approval next month.

➢ Internal processes commenced.

9 25 June 2018 Project LISA

Thank You