ADTECH PROJECT COMPLETION REPORT June 2009

Eastern Star Gas – Bibblewindi Flowline 32,500m

Location : Narrabri NSW

Service : Coal Seam Methane

Product : Centron® GRE API 15HR Design 500psi 10” (250mm)

ADTECH FRP Pty Ltd. ACN 073 320 546 1 / 345 Victoria Rd, Malaga WA 6090 , Australia Fax +61 08 9249 3966 Phone +61 08 9262 7000 Email: sales@adtechfrp.com

ADTECH PROJECT COMPLETION REPORT June 2009

Eastern Star Gas – Bibblewindi Flowline 32,500m

Location : Narrabri NSW

Service : Coal Seam Methane

Product : Centron® GRE API 15HR Design 500psi 10” (250mm)

General Overview

Design Points for Bibblewindi Gas Flowline

� The Wilga Park Power Station currently operates 4 x 1MW gas generating sets. The delivered gas will secure gas supply to the existing 1MW generators and allow future expansion of the power station to

approximately 40 MW.

� Initially, the flowline will transport 2.5 MMscfd of CSG. The flowline must also have flow expansion

capacity up to 12 MMscfd, to provide gas as the Wilga Park Power Station generating capacity increases, and so a 250NB selection was made by Eastern Star Gas.

� The flowline was manufactured to meet API 15HR as referred to by AS2885-1:2007.

� The flowline is designed to meet ISO 14692-3:2002 as referred to by AS2885-1:2007.

� Some requirements of AS2885-1:2007 were also met, such as pipeline marker spacing, depth of burial, mainline valves.

� Eastern Star Gas also requested that the Bibblewindi Flowline be rated and hydrostatically tested at its

maximum potential, even though the flowline will be operated at a lower pressure. This design

approach will allow ESG to potentially use the line for another service (e.g. water) in the future.

� Relevant design information for the Bibblewindi flowline is as follows:

Design Code ISO 14692-3:2002 as referred to by AS 2885-

1:2007

Location Class (to AS2885-1:2007) R1 (Rural) - Buried

ADTECH FRP Pty Ltd ACN 073 320 546 Unit 1, 345 Victoria Road Malaga WA 6090 Australia Fax +61 08 9249 3966 Phone +61 08 9262 7000

Email: sales@adtechfrp.com

Website: www.adtechfrp.com

The Fibreglass Pipeline Specialists

Design Application Saturated Coal Seam Gas

Design Life 50 years

Design Pressure (MAOP) 3,000 kPag

Hydrostatic Test Pressure 4,000 kPag

Design Temperature -20 to 65oC

Flowline Length 33 km

Line Pipe Diameter DN250 (10”)

Line Pipe Material Anhydride Resin System

Line Pipe Selection SPH 500 Series

Manufactured Lengths 9m Male-Female

Nominal Inside Diameter 246.9 mm

Wall Thickness: Nominal WT Manufact. Tol. Design WT

5.2 mm (0.206”) 0.5 mm (0.02”) 4.7 mm (0.185”)

Nominal Outside Diameter 257.3 mm (10.06”)

OD of Box Joints 315 mm

For Comparison Only, the Minimum Req’d Wall Thickness: to API 15HR to AS 2885-1:2007

4.7 mm 4.0 mm

Fittings SPH 2000 – UV Gauze Wrap

O-Rings Buna-Nitrile

Flanges To ASME B16.5

Coefficient of Thermal Expansion 25.7 x 10-6 mm/mm/oC

� For Bibblewindi, ISO 14692 was used to provide a thorough assessment of the flowline’s ability to withstand stress in a safe manner. This was done by:

o Generating a short-term stress envelope on a plot of hoop and axial stress. This was

achieved by using proven destructive testing techniques whereby a Regression Curve was generated in accordance with ASTM D2992.

o Further destructive testing (long term) was then used to develop a scaled version of the failure envelope suitable for a sustained 20 year salt water, steady pressure load at a

temperature of 65oC;

o Further scaling of the envelope using correction factors, which adjust the test results to

suit the actual Project conditions; - Design life other than 20 years; - Operating temperature other than 65oC; - A fluid other than salt water;

- Cycling loading conditions and fatigue;

o Applying a suitable design factor (Factor f2) to further scale the failure envelope

depending on the load duration being either sustained or occasional.

o As a result of this methodology, design envelopes were generated to verify whether the design loads were Acceptable or Not Acceptable.

o The design loads were determined using all relevant combinations of loads which may generate stress in the GRE pipe wall, including:

- hoop & axial stresses resulting from internal pressure; - pipe deflection;

- installation curvature; - thermal loads;

- buckling stresses;

- water hammer; - vehicle wheel loads;

- and others

o The following is an excerpt from ISO14692-3:2002 and illustrates how the factored long-

term design envelope is generated (scaled) from the short-term envelope. o

� By adhering to the comprehensive requirements of ISO 14692, together with the high hydrostatic test pressure, Eastern Star Gas will inherit a high-integrity flowline system.

Adtech Scope of Work

Engineering Design of Bibblewindi Flowline (3rd

Party Validated)

Logistics coordination: Manufacturing of product

International Shipping - Australian customs clearance,

rail to Narrabri, pick up of containers at railhead,

transport to pipe lay down areas, destuffing of

containers, pick up and return of empty containers to

railhead

Civil Works ROW preparation through farm land

(ESG controlled and coordinated 10m forest clearing by local forestry licensed

contractor as separate contract)

Directional Drills: Newell Highway and Bohena Creek

Trenching

Pipe handling: string out along ROW

Make up of pipe to Manufacturers specifications

Hydro-testing

Backfill of trench & reinstatement

Gas leak detection survey

Handover for service

ROW Preparation. Running parallel to high voltage power line easement (Narrabri Black soil)

Productivity

Adtech’s goal on ESG’s 10” Bibblewindi Flowline was to provide the highest level

of quality control possible throughout the installation process and set new record

installation rates with no accidents or incidents throughout the installation.

To achieve the installation quality control goal all steps in the process, including the

initial handling of export packed pipe in the 40ft containers, were reviewed starting

with safe handling practices for personnel and product, as well as productivity.

To achieve high rates of installation required pipe to be destuffed from containers,

loaded onto pipe trailers, transported to ROW and off loaded, ready for make up.

This was critical also when working in a limited 10m ROW. The pipe had to be

strung out before the trencher had cut the trench or there was no room for the

stringing crew to enter, turn around and exit.

Adtech designed and manufactured an extraction system to enable the full 40ft

container load of 10” pipe to be removed from the container as one operation.

The pipe could then be removed from the bundles in multiples and loaded onto the

pipe trailers or stacked. Result was 8 to 10 times faster than individual lengths

extracted from the container. Less stress on personnel and pipe.

61 x 40ft Hi-Cube containers delivered to site

Unloading and loading multiple pipe joints

Pipe strung out to keep in front of trencher

High Quality Control & Efficiency with Minimal Stress on Crew

The Patented Adtech Installer makes light work of the 250mm (10”)

Centron GRE pipe.

Product is made up to manufacturers specification and then lowered into the trench in same process. Bend radius is controlled during installation and lowering process resulting in minimal stress on pipe.

Adtech set new productivity installation records everyday on the 10” with best result of 1590m installed in

1 day (6 crew & equipment) (If the crew had known they were at 1590m mark close to knock off they would have made up 2 more joints

to get over 1600m. Good crew and good team effort)

Centron® proprietary dual seal SPH tapered 4 thread per inch sealing thread with back up o-ring

Environmental Achievement

Adtech worked with ESG Engineers and the Environmental Manager over many

months prior to the project award, assisting in the environmental discussions with

the Forestry Department and committing to installing the 10” flowline working with

a 10 meter ROW.

Approximately 15 kilometres of the flowline ran through the Pilliga State forest.

Adtech committing to a 10m ROW to perform the installation assisted in Eastern

Star Gas providing the Forestry Department with the smallest environmental

footprint possible for the flowline, saving hectares of forest from clearing.

A Win Win for all.

Pilliga State Forest

SAFETY ACHIEVEMENT One reportable Accident – Injury for the total project duration and operations. One cut finger, involving a brand new knife resizing a ½” hose required a couple of stitches. Won’t name the person as they were embarrassed enough.

Directional Drills The Bibblewindi Flowline required two directional drills. The first was the Newell Highway being the main highway between two Australian states - Brisbane in Queensland and Melbourne in Victoria. The highway has constant continuous flow of semi trailers, opening up the highway and diverting traffic was not an option. As well as being the main highway between the two capital cities, the fibre optic communications cable between the two cities also ran at the side of the highway. Damaging the cable was not in anyone’s best interest. Cable locating and Potholing services were utilized with the asset owners to locate and confirm correct cable. Other services were identified in close proximity. The service was exposed to ensure directional drill had known depth of cable and built in plenty of depth safety factor. The drill started on the side of the highway with the cable for visual control ensuring all bases covered.

Acknowledgements

We would like to take the opportunity to thank a number of people involved with the project. Roland Sleeman Initially Consultant Engineer to ESG

Initial design consideration looking for best option for project requirements. For his engineering support of Fibreglass pipe for ESG’s service.

Brett Langley Manager – Surface Engineering ESG

For his support and understanding throughout the installation program. Planning and scheduling of personnel and services for communication with Landholders, tree clearing, water supply, hydrotest and gas test witnessing. Coming out late and unlocking the gate so I didn’t have to spend the night in the office.

John Higgins Operations Manager ESG For his support and assistance throughout the installation program. Easy to work with and efficient with help or answers whenever required.

Allocating resources to assist where required Jason Frater Engineering support ESG

For his flexibility to be available on an as required basis for test witnessing or crosschecks. Communication with landholders.

Tom Bennet Health & Safety Officer ESG For his extensive knowledge on Telstra buried services in the region.

Helped take the pressure down when an unidentified unmarked service was located by the trencher.

Tim Doohnan Manager Environment ESG For his management of the landholders along the pipe route. Support during the installation process.

ESG Field Personnel Everyone was good to get along with, good team and ready to assist if the question was asked.

ADTECH’S Crew For outstanding safe working practices, Team Effort, Diligence to Quality Control, Efficiency and a happy working environment.

Establishing new record installation rates and backing it up repeatedly.