Minister releases full report into Varanus Island gas pipeline explosion

Mines and Petroleum Minister Norman Moore has released the final report into the Varanus Island offshore gas pipeline incident which occurred in June this year.

The report, prepared for the Department of Industry and Resources (DoIR) by the National Offshore Petroleum Safety Authority (NOPSA), reveals that the immediate physical cause of the gas explosion at the island's gas production facility operated by Apache Energy Ltd was the rupture of the 12-inch gas sales pipeline.

Mr Moore expressed disappointment that the investigation's limited terms of reference meant that it had not addressed issues relating to regulatory oversight of the safety regime on the Varanus Island facility.

"Interestingly, the Labor government chose the regulator (NOPSA on behalf of DoIR) to carry out the investigation," he said.

"The lack of leadership and direction from my predecessor meant that a comprehensive investigation into the causes leading to this disaster - rather than simply how it occurred - did not take place.

"The Labor government should have ordered a full and independent investigation into this issue.  I have not ruled out ordering such an inquiry at a later date."

The Minister said the report identified the main causes of the Varanus Island explosion as:

·        ineffective anti-corrosion coating at the beach crossing section of a 12-inch sales gas pipeline, due to damage and/or dis-bondment from the pipeline;

·        ineffective cathodic protection of the wet-dry transition zone of the beach crossing section of  a 12-inch sales gas pipeline on Varanus Island; and

·        ineffective inspection and monitoring by Apache Energy of the beach crossing and shallow water section of the pipeline.

Mr Moore said the operator was responsible for maintaining a safe working environment under the safety case management system.

"Under the safety case regime, the operator is required to identify hazards and assess risks to health and safety and to implement control measures to reduce those risks," he said.

"The ongoing inspection, monitoring and maintenance of control measures are associated with those risks and the management regime.

"The report has indicated that Apache and its co-licensees may have committed offences under two pipeline Acts."

The Minister said there were a number of issues relating to the investigation still under way, to identify if any enforcement action would be taken.

Reiterating that the investigation had focused on the technical causes of the incident and not the regulatory system or actions of the regulators, Mr Moore said he was considering a further inquiry.

"I think it is important that we cover those aspects," he said.

"However, I would like to see what the Senate inquiry findings are before I commit to any further investigations."

The Senate inquiry is looking into the economic impact of the Western Australian gas crisis and the State Government's response to the incident.

Mr Moore said today that DoIR had already contacted NOPSA and the Department of Consumer and Employment Protection requesting advice about any changes to procedures that could be considered.

He said he publicly released the full detail of the report because the WA public had a right to know the cause of the Varanus Island gas pipeline explosion incident which cut 30 per cent of the State's gas supplies.