By Simon Johanson and Nick Toscano
Mining giant Rio Tinto’s alumina refineries and explosives manufacturer Orica’s cyanide plant are running at reduced capacity as the two major gas users scramble to secure supplies following a fire on a critical gas pipeline operated by retailer Jemena that services Gladstone.
Jemena said its crews had made safe a portion of the Queensland Gas Pipeline which caught on fire on Tuesday. The blaze, clearly visible on footage published by the ABC, was on a section of pipe between Rolleston and Oombabeer, about six hours west of Gladstone. The ABC reported that emergency services responded to a large blaze in the area around 7.30am local time.
AEMO has directed large industrial users to either reduce or cease using gas in Gladstone.Credit:
The Australian Energy Market Operator (AEMO) issued orders to divert gas to shore up supplies for households and communities in Gladstone and Rockhampton. Jemena said there are currently no supply shortages for residential customers.
An AEMO spokesperson on Thursday said large industrial users supplied by the Queensland Gas Pipeline had been required to either cease or reduce their gas usage. AEMO had also issued directions to divert gas from the Westside Meridian production facility to Gladstone to increase supplies.
“This helped mitigate the impact of the incident and improve the reliability and adequacy of gas supply in the area, including for residential and small commercial customers,” the spokesperson said.
AEMO said it continued to work with Jemena and large users to increase gas supply, and would continue to consult the Queensland government.
Rio’s two alumina refineries and its Boyne aluminium smelter in Gladstone are among the country’s most power-hungry manufacturing sites. The smelter is a heavy user of coal, but the miner’s Yarwun alumina refinery and Queensland Alumina refinery are both reliant on gas.
The company said it was notified by Jemena about the incident.
“We are working with Jemena and the Australian Energy Market Operator to understand the impact to our Gladstone operations,” the company said.
Rio did not detail the extent of the fire’s impact on its operations. A person with knowledge of its operations who was not authorised to speak publicly said the alumina refineries were still operating, but at reduced gas usage.
The company is in discussions with other suppliers to find alternative gas sources.
Another heavy industrial gas user, Orica, a major supplier of explosives and chemicals to the mining industry, said it has almost completely wound down its sodium cyanide plant at its Yarwun manufacturing facility in Gladstone.
“We have worked closely with Jemena to safely reduce our cyanide production at the site until the incident is resolved,” the company said.
“Ammonium nitrate production is continuing as normal, and we don’t expect any supply disruption to our customers at this stage and will provide further updates as they become available,” it said.
Jemena said it was developing a restoration plan, mobilising additional crew to the region and securing equipment and materials required to conduct the repair.
“Once the restoration plan has been completed, we will share our anticipated restoration timeframe” the retailer said.
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