Gas Turbine Conference Melbourne 2014; Gas Regulatory Compliance landscape in Australia presented by Dr Rovel Shackleford CEO of Optec Australia's leading provider of Industrial Gas Training and Consulting

1. Industrial gas appliances;
demystifying gas regulatory compliance for Gas
Turbine owners and operators
Dr Rovel Shackleford, CEO, Optec Pty Ltd 1

2. Points Covered Today
• Current National Gas regulations overview and direction
• A little background
• Gas regulation and compliance implications for Power Generation
• Current risks
• Current costs
• Gas regulation and compliance implications for LNG transmission
• The realities and associated logistics associated with
implementation of the Gas regulation and changes
• Training Providers need to partner with you in driving and delivering solutions
• Outlook for future regulatory changes and the impact on the
industry
• Compliance – refresher training
Dr Rovel Shackleford, CEO, Optec Pty Ltd 2

3. Current National Gas regulations overview
and direction
Dr Rovel Shackleford, CEO, Optec Pty Ltd 3

4. A little background
• A series of COAG meetings commencing in 2007 led to the design,
development and implementation of the Gas Licencing regime across
Australia
• The Licencing requirements may vary slightly from State to
State/Territory – the underlying principles are the same
• Compliance is assured when training is delivered by an
approved/accredited/recognised RTO
• Gas Standards; Gas Standards Act (GSA) 1972; Gas Standards (Gas
Fitting Consumer Gas Installations) Regulations
Dr Rovel Shackleford, CEO, Optec Pty Ltd 4

5. 1. AS/NZS 5601 ‐ Gas Installations (200 kPa)
2. AS 3814 ‐ Industrial and Commercial Gas‐fired
Appliances (Type B)
3. AS/NZS 1596 ‐ Storage and handling of LP
Gas
4. AS 4732 ‐ LP Gas fuel systems for marine
engines
5. AS/NZS 1425 ‐ LP Gas fuel systems for
vehicle engines
Dr Rovel Shackleford, CEO, Optec Pty Ltd 5

6. 6. AS 2739 – Natural gas (NG) fuel systems for
vehicle engines
7. AS 4983 – Gas fuel systems for forklifts and
industrial engines
8. AS 5092 – CNG refuelling stations
9. AS 3961 – The storage and handling of
liquefied natural gas
10.AS 4645.3 – Gas distribution networks –
plastic pipe systems
Dr Rovel Shackleford, CEO, Optec Pty Ltd 6

7. 11.AS/NZS 4645.2 – Gas distribution networks – steel pipe
systems
12.AS 2885.1 ‐ Pipelines ‐ Gas and LP (Design and
Construction)
13.AS 2885.2 ‐ Pipelines ‐ Gas and LP (Welding)
14.AS/NZS 2885.5 ‐ Pipelines ‐ Gas and LP (Field Pressure
Testing)
15.AS 4041 ‐ Pressure Piping
Dr Rovel Shackleford, CEO, Optec Pty Ltd 7

8. Summary
Gas Standards Act
Gas Regulations
AS 3814 AS/NZS
5601
Dr Rovel Shackleford, CEO, Optec Pty Ltd 8

9. Type B Gas Appliances
•Turbines/engines
•Boilers (steam and HW)
•Kilns
•Incinerators
•Furnaces
•Others?
Dr Rovel Shackleford, CEO, Optec Pty Ltd 9

10. Gas regulation and compliance
implications for Power Generation
Dr Rovel Shackleford, CEO, Optec Pty Ltd 10

11. Current risks
• 90% of Fitters/Electricians and Technicians do not know the properties of
the gases they are working with; downstream or upstream
• 100% of cases the preparation of the Pre‐start JSA/JHA does not require
reading the MSDS
• 100% of Technicians do not read the Manufacturer’s Installation
Instructions
• 100% of Technicians do not use the appropriate tools; torque tools
• 90% of Technicians do not understand potential ignition sources
• 80% of Technicians do not understand simple leak testing methods
• 80% of Technicians do not understand the importance of flue gas analysis
• 48% of Technicians do not know where the primary isolation is located
within their plant
Dr Rovel Shackleford, CEO, Optec Pty Ltd 11

12. Current costs
• The term and pursuit of ‘like for like’
• Potential failures associated with incorrect installation
• Non‐compliance – understanding the limits
• Risk associated incidents
Dr Rovel Shackleford, CEO, Optec Pty Ltd 12

13. Gas regulation and compliance
implications for LNG transmission
Dr Rovel Shackleford, CEO, Optec Pty Ltd 13

14. Ditto
• The same applies for all Gas Installations and associated pipework!
• The Regs may vary from State to State/Territory the underlying
training has been set to a National Standard and set of Competencies
• It is mandatory that all Technicians and Trades persons working on
industrial gas asset above a certain pressure and Megajoules rating
must undertake the basic Regulatory Gas Awareness Training
(Supervised Gas Fitter) (MUCH MORE THAN JUST THE REGS)!
Dr Rovel Shackleford, CEO, Optec Pty Ltd 14

15. The realities and associated logistics associated with
implementation of the Gas regulation and changes
Dr Rovel Shackleford, CEO, Optec Pty Ltd 15

16. Training Providers need to partner with you in
driving and delivering solutions
• Basic training ‘Supervised Gas Fitter’; (two days)
• Regs
• Tips Traps
• Compliance Reporting
• Working Safely
• Appropriate Supervision
• A must!!!
• Refresher Training; not prescribed but preferred biannually
Dr Rovel Shackleford, CEO, Optec Pty Ltd 16

17. Outlook for future regulatory changes and
the impact on the industry
Dr Rovel Shackleford, CEO, Optec Pty Ltd 17

18. In a Perfect world
• National Licencing Scheme?
• The training is National and accreditation is valid in all Sates and
Territories (Training is delivered to the National Training Package)
• Compliance; is meeting the State and Territories Regs and the
requirements under the Occupational Health and Safety Act
• Refresher training; not mandatory but encouraged by the Regulators
(Asset Owners appetite for risk)
Dr Rovel Shackleford, CEO, Optec Pty Ltd 18

19. Take the extra step when it comes to
safety, because if you just tell me, I may
forget, If show you me, I might
remember, but if you involve me I’m
committed.
Dr Rovel Shackleford, CEO, Optec Pty Ltd 19

20. Thank YOU!
Dr Rovel Shackleford, CEO, Optec Pty Ltd 20

21. Dr Rovel Shackleford, CEO, Optec Pty Ltd 21