17/06/2008 - 11:44

Call for 2nd gas pipeline misguided:APIA

17/06/2008 - 11:44

Bookmark

Save articles for future reference.

Calls from the federal opposition for a second gas pipeline to protect the state's gas supply are misguided, the Australian Pipeline Industry Association said today.

Call for 2nd gas pipeline misguided:APIA

Calls from the federal opposition for a second gas pipeline to protect the state's gas supply are misguided, the Australian Pipeline Industry Association said today.

"It doesn't matter how many pipelines are built - the amount of natural gas available to WA is a result of production challenges, not transmission," APIA's Chief Executive, Cheryl Cartwright, said.

Ms Cartwright was responding to calls by the current Federal Opposition energy spokesman and the former Energy Minister who have both called for duplication of the Dampier-Bunbury Natural Gas Pipeline (DBNGP), which supplies natural gas from North-West Shelf fields.

"It does appear that the Federal Opposition has missed the point in its comments on WA's gas supply," Ms Cartwright said.

"The amount of gas available to WA industry and consumers is dependent upon the production schedules - the transportation of the product is not in doubt.

"Also, it should be noted that pipelines can be expanded more quickly than new demand (such as a new power plant) is facilitated or constructed."

The DBNGP has recently completed a major expansion, increasing that company's capacity to transport WA's natural gas supplies. And the pipeline can be expanded further, depending on demand.

"As a regulated pipeline, expansion will occur when the regulator allows the company sufficient resources to warrant such a major investment," Ms Cartwright said.

"While expansion is costly, the construction of a new pipeline would cost billions of dollars and dramatically increase the cost of WA's domestic gas supply.

"Rather than focussing on the transmission challenges, Government and Opposition should focus on the actual supply of gas, including storage possibilities."

The state's gas supply was slashed by a third following an explosion at Apache Energy's Varanus gas facility a fortnight ago. The company said it would take around two months for partial production to resume.

Premier Alan Carpenter is due to make a televised address tonight, urging the public to use gas fuelled appliances sparingly.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options