The owner of the Dampier to Bunbury natural gas pipeline has proceeded to the next stage of its expansion plans after receiving financing and equity commitments.
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).
The 5B expansion follows the completion of the $660 million stage 5A expansion that involved 570km of looping.
The pipeline is the only natural gas pipeline connecting the Carnarvon Basin on Western Australia's North-west Shelf with industrial, commercial and residential customers in Perth and the surrounding region. The pipeline runs from the Burrup Peninsula, near Dampier, to Bunbury in the south-west of the State
A statement from Dampier Bunbury Pipeline is pasted below
DBP CONFIRMS GO-AHEAD FOR STAGE 5B EXPANSION
Dampier Bunbury Pipeline (DBP) today announced that it had obtained necessary financing and equity commitments to enable it to confirm its commitment to the Stage 5B Expansion Project.
DBP Executive Chairman, Stuart Hohnen said that contracts with shippers for the additional capacity to be delivered from 2010 had now been executed. Construction is anticipated to commence during 2009 and be completed in the first half of 2010.
As advised in DBP's previous press announcement dated 11th April 2008, Stage 5B represents 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 anticipated capital cost of the project is approximately $700 million.
Stage 5B involves a further 440 kilometres of looping, which, when completed, would result in the DBNGP system being more than 75% duplicated.
