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AGL denies pipeline approach

Gas distributor Australian Gas Light Company (AGL) denied it had been approached by the State Government to buy WA’s major natural gas pipeline, despite reports to this effect.The pipeline system includes the 1,600km pipeline from Dampier to Bunbury, built to deliver North West Shelf natural gas to Perth and the south-west. An AGL official was reported as saying the pipeline was an obvious target for AGL’s expansion plans but that any arrangement had to be capable of producing a return to shareholders. The pipeline system carried more than $1 billion in debt at the time and was then a modest contributor to the operating revenue of Alintagas, now known as Alinta.

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