Pipeline seeks State help

A PLAN to extend the Dampier to Bunbury Natural Gas Pipeline to the Great Southern Region will not go ahead without WA Government funds.

DBNGP owner Epic Energy conducted a feasibility study of the extension and found there was insufficient gas demand in the region to justify a pipeline on purely commercial terms.

Epic Energy general manager business development David Bradley the company identified markets with a high probability of consuming natural gas within the next five years and they added up to a demand volume of around 10 terajoules per day.

“Assuming a delivered gas price to Albany of $5 per gigajoule, all volumes under 25 terajoules per day would require a contribution from the state.”

On that assumption, the Government would have to contribute $2.8 million per year.

Electricity in the Great Southern costs about $9.50 per gigajoule and Liquefied Petroleum Gas costs about $6.75 per gigajoule.

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