Economic fallout of Apache Energy pipeline explosion

 

According to an AAP report published in The Australian on 6 June 2008, Paul Adams, head of research at DJ Carmichael, spoke about the impact of the Apache Energy explosion.

“If damage to the Apache plant turned out to be significant, the incident had the potential to “hit WA’s mining industry hard”, Mr Adams said.

Apache could face a massive compensation bill if the incident was found to be the result of negligent maintenance practices, Mr Adams said.”

Further details emerged about the damage from the explosion.  Apparently at least three of Apache Energy’s online pipelines were on fire.  Apache could not say how long the shut down of the plant would continue for as the site needs to be further investigated.

Incident scene 5 June 2008

 

 

Pipeline Explosion in Western Australia

Western Australia’s gas supply has been disrupted due to an explosion at the Apache Energy off Dampier (shown below) on 3 June 2008.  Thirty per cent of the gas supply for that state is out of action.

There were no injuries and personnel were evacuated safely. The explosion site is pictured below.

This explosion presents important energy supply questions for the Western Australian government but, in the context of this blog, there are several paths to follow.  One will be to watch how Apache Energy handles the disaster management and business continuity.  The government will, undoubtedly, begin an inquiry and it will be interesting to note the assessment team structure and reporting lines. 

Another perspective will be to watch all of this evolve in comparison with the Esso Longford explosion in Victoria in 1998 which took out domestic and industrial gas supplies for almost two weeks. This incident lead to a Royal Commission. Compare and contrast.