❓ A parliamentary question addresses the January gas supply disruption, specifically Verve Energy's gas purchase from Burrup Fertilisers, Horizon Power's involvement, and contingency planning. The Minister provides answers, clarifying the circumstances of the gas purchase and the existing emergency management procedures.
AnsweredQoN 249Legislative Council
QuestionView source ↗
GAS SUPPLY — JANUARY DISRUPTION
I refer the minister to the reply to question without notice 199 concerning the purchase of gas from Burrup Fertilisers Pty Ltd. (1) What options, other than the Burrup Fertilisers gas purchase, was the Verve Energy chief executive officer presented with? (2) Why did Horizon Power pay for the purchase from Burrup Fertilisers? (3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE
I refer the minister to the reply to question without notice 199 concerning the purchase of gas from Burrup Fertilisers Pty Ltd. (1) What options, other than the Burrup Fertilisers gas purchase, was the Verve Energy chief executive officer presented with? (2) Why did Horizon Power pay for the purchase from Burrup Fertilisers? (3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE
AnswerView source ↗
I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(1) What options, other than the Burrup Fertilisers gas purchase, was the Verve Energy chief executive officer presented with? (2) Why did Horizon Power pay for the purchase from Burrup Fertilisers? (3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(2) Why did Horizon Power pay for the purchase from Burrup Fertilisers? (3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(1) What options, other than the Burrup Fertilisers gas purchase, was the Verve Energy chief executive officer presented with? (2) Why did Horizon Power pay for the purchase from Burrup Fertilisers? (3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(2) Why did Horizon Power pay for the purchase from Burrup Fertilisers? (3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(3) Was the Burrup Fertilisers option discussed with Horizon Power prior to the deal proceeding; and, if so, with whom was it discussed? (4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(4) Will the minister table a copy of Verve Energy’s contingency plan for dealing with gas supply disruptions; and, if not, why not? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
I thank the honourable Leader of the Opposition for providing notice of the question. (1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(1) Verve Energy had sought to purchase gas from a range of large consumers and suppliers, and had effectively purchased everything it could find prior to the Burrup Fertilisers gas purchase. (2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(2) Verve Energy supplied gas to Horizon Power in accordance with the supply agreement between the two corporations. Horizon Power paid for the gas that was supplied and used. (3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(3) No. Verve Energy had decided to purchase the gas to secure the south west interconnected system. Immediately subsequent to this decision, it became apparent that Horizon’s requirements were more immediate than Verve’s. The opportunity to purchase the gas from Verve was presented to Horizon Power, which agreed to the proposal. (4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
(4) No. There is no contingency plan specifically for the management of gas supply disruptions. Verve Energy has the expertise and processes in place to manage fuel supply to its generating stations in both routine and emergency situations. It also maintains crisis response procedures and contact lists of potential sources of supply in an emergency. Together, these arrangements ensure that such an incident can be effectively managed.
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