11/04/2008 - 08:34

Further expansion for Dampier to Bunbury pipeline

11/04/2008 - 08:34

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The owner of the Dampier to Bunbury natural gas pipeline has announced further expansion plans after receiving additional firm capacity requests from existing and prospective users of the pipeline.

Further expansion for Dampier to Bunbury pipeline

The owner of the Dampier to Bunbury natural gas pipeline has announced further expansion plans after receiving additional firm capacity requests from existing and prospective users of the pipeline.

Dampier Bunbury Pipeline plans to spend $700 million on its stage 5B expansion, which will involve installing a further 440 kilometres of parallel pipe (or looping).

Its annoucnement coincided with the substantial completion of the $660 million stage 5A expansion, which involved 570 kilometres of looping.

 

Two statements from Dampier Bunbury Pipeline are pasted below:

DBP ANNOUNCES MAJOR NEW EXPANSION

Dampier Bunbury Pipeline (DBP) today announced that it has received additional firm capacity requests from existing and prospective shippers which will enable it to significantly increase the size of its previously announced Stage 5A(2) expansion project.

DBP Executive Chairman, Stuart Hohnen said that these new requests totaled approximately 75 TJ/day of firm full haul capacity and 125 TJ/day of part haul capacity and will be required by shippers from 2010. Construction is anticipated to take place in 2009, concurrently with the Stage 5A(2) expansion.

In aggregate, Stage 5A(2) and the new requests represent further capacity requirements of approximately 110 TJ/day of firm full haul capacity and 140 TJ/day of part haul capacity in addition to the recently completed Stage 5A expansion. The combined project, with an anticipated capital cost in the order of $700 million will now be known as Stage 5B.

A final decision to proceed with the larger Stage 5B project remains subject to finance and board approval.

Mr Hohnen commented that the size and timing of the Stage 5B expansion was consistent with DBP's previous expectations with respect to the expansion of the DBNGP system. Stage 5B is likely to involve a further 440 kilometres of looping, which, when completed, would result in the DBNGP system being more than 75% duplicated. Duplication of the pipeline has important benefits in terms of increased reliability.

As with the Stage 4 and 5A expansions, the Stage 5B expansion program will be fully underpinned by long term contracts with shippers.

The ability of DBP and its major suppliers to substantially increase the scope of the previously announced Stage 5A(2) project - and deliver new capacity within the same timeframe - highlights the commitment of DBP and its shareholders to respond to increasing demand for reliable energy supply in the South West of Western Australia.

Mr Hohnen indicated that DBP was encouraged by the increased level of interest being shown by upstream producers in new domestic gas developments. The developers of fields such as Reindeer, Julimar, Macedon, Pluto, Wheatstone and Gorgon have recently expressed interest in supplying the domestic market, creating confidence that further pipeline expansion will be required by 2011-12 when a number of these developments are targeted for completion.

Mr Hohnen confirmed that DBP continues to work with existing and prospective shippers - and with prospective producers - to identify opportunities to underpin a future expansion beyond Stage 5B.

Editor's Note: Dampier Bunbury Pipeline is the trading name of the DBNGP group of companies, ultimately owned by the consortium that purchased the Dampier to Bunbury Natural Gas Pipeline in October 2004. DBP is majority owned by DUET Group - with Alcoa and Babcock & Brown Infrastructure as minority owners.

 

PIPELINE EXPANSION PROVIDES MAJOR BOOST TO WA ECONOMY

Dampier Bunbury Pipeline (DBP), the owner of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) has announced the substantial completion of the $660 million Stage 5A Expansion which has significantly increased the pipeline's capacity to meet Western Australia's growing gas demand.

The Stage 5A Expansion increases Firm Full Haul Capacity by approximately 100 Terajoules per day to contribute towards the State's continued economic growth, growing electricity demand and climate change initiatives. The DBNGP supplies 90 per cent of the South West's gas needs.

Construction of the Stage 5A Expansion commenced in February 2007 and involved installing 570 kilometres of parallel pipe (or loops), effectively duplicating 50 per cent of the DBNGP mainline.

DBP joined by the Deputy Premier the Hon Eric S Ripper MLA, today celebrated the successful completion of the expansion.

DBP Executive Chairman Mr Stuart Hohnen said the Stage 5A Expansion brought DBP's expansion expenditure to $1.1 billion since taking ownership of the DBNGP in October 2004.

"The Dampier to Bunbury Natural Gas Pipeline is the backbone of Western Australia's flourishing energy economy," Mr Hohnen said.

"Through significant and deliberate investment by DBP the pipeline has expanded rapidly to meet the growing needs of the Western Australian domestic market.

"The Stage 5A Expansion was delivered on time and on budget, in a climate where many projects of this scale suffer delays and cost over runs. This has been a considerable achievement on the part of all concerned, including project manager, WestNet Energy, a division of Alinta Asset Management."

Mr Hohnen said DBP will continue to pursue opportunities to expand the DBNGP into the future where demand for full haul capacity exists.

 

 

 

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