The owners of the Dampier to Bunbury natural gas pipeline are in a commercial stand-off with the new operators of the pipeline, after investment group Babcock & Brown teamed up with Singapore Power to buy Alinta Ltd.
The dispute first came to light in July, just before Alinta shareholders were due to vote on the sale of their business to Babcock and Singapore Power.
More than three months later, DUET said it had refused to consent to the 'novation' of the operating service agreements (OSAs) over the pipeline.
DUET chief executive Peter Barry said "key issues remain unresolved regarding how (Babcock) intends to perform its duties under the agreements, and the process of transitioning the OSAs from Alinta Asset Management to Babcock".
DUET said Babcock has rejected the terms of revised OSAs proposed by Dampier Bunbury Pipeline and Alinta Network Holdings (in which DUET has an interest).
It also said Babcock has not provided information regarding its plan to manage the transition of DBP and ANH's operations from Alinta Asset Management to Babcock.
DUET also said that "information relating to the financial standing of nominated counter parties has not been provided".
A Babcock spokesperson said it had provided a comprehensive response to the pipeline owners and added that the change of ownership would not fundamentally affect the operating agreements.
The stand-off means that DBP and ANH will continue to operate under the existing structure and arrangements.
