The Dampier to Bunbury Pipeline is to add around 50 per cent to its capacity by the end of 2008-09 with a $1.5 billion expansion driven by demand from new and existing customers.
The expansion, largely done by looping but including some compression, will be on top of a $430 million expansion which is already underway for the natural gas pipeline.
DBP manager commercial Mark Cooper said the operator was still going through the process of signing off the proposal with the regulator regarding costs but that the 375 terrajoule/day expansion was completely pre-contracted by users.
"There are customers that want the capacity and it is all in response to market demand," Mr Cooper said.
Capacity will end up at more than 1000Tj/day when the expasnion is complete.
Below is the announcement:
Pipeline expansion hits $1.5 billion as demand soars
Soaring industrial growth in Western Australia has increased the size of the proposed Stage 5 expansion of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) to approximately an extra 375 TJ/day of gas at a potential construction cost of around $1.5 billion. Dampier Bunbury Pipeline (DBP) revealed today that it had received requests from major industrial customers for approximately 375 TJ/day of new capacity for the period from late 2007 to 2009. To meet this increasing demand - which has come more than 10 years ahead of initial projections - DBP would need to construct approximately an additional 1150km of new pipeline alongside the existing pipe at an estimated cost of approximately $1.5 billion. Combined with the current $433 million Stage 4 expansion, the Stage 5 expansion would effectively duplicate 90 per cent of the length of Australia's largest pipeline. The size and estimated cost of the proposed Stage 5 expansion are to be revealed in an application to be lodged shortly with Western Australia's Economic Regulation Authority (ERA). The DBP application seeks the ERA's pre-approval of the capital costs of the Stage 5 expansion. DBP Executive Chairman Stuart Hohnen said ERA pre-approval of the capital costs was an important
