Western Australia City of Albany to Be Connected to Gas By 2015

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Researched by Industrial Info Resources (Perth, Australia)--The yet-to-be-built Bunbury-to-Albany Natural Gas Pipeline will be delivering gas to Albany by 2015, according to Western Australia Premier Colin Barnett. Despite failing to secure an anchor customer, the Western Australian state government plans to proceed with the construction of a natural gas pipeline to the south coastal city of Albany.

Under a revised plan, the pipeline will have a capacity of 12 terajoules per day and will cost an estimated $140 million. This is significantly smaller than the 50 terajoule-per-day, $466 million pipeline that was originally planned. The reduced cost is a result of the smaller capacity of the 6-inch diameter pipeline.

The state government has selected a preferred route for the 350-kilometer pipeline, passing within close vicinity of country towns such as Donnybrook, Bridgetown, Manjimup and Mt. Barker. The pipeline is being designed to allow for future expansion, including a lateral from Mt. Barker to Katanning at some point.

Once the pipeline is completed, it is expected planning will begin of a reticulated gas network that will service Albany and towns near the pipeline.

The pipeline will draw gas from the Dampier-to-Bunbury Natural Gas Pipeline (DBNGP), the 1,489-kilometer pipeline owned by DBNGP Nominees Pty Limited (Perth, Australia) that already supplies gas to the Perth Metro area from the state's gas processing facilities in the northwest. The DBNGP recently underwent the Stage 5B expansion in anticipation of increased demands from future development, such as the Bunbury-to-Albany Natural Gas Pipeline.

The state government has committed to co-fund the project through a combination of upfront capital and an ongoing subsidy. The extent of the government's financial commitment will be determined during the tender process, but it is expected they will retain 30% to 40% ownership of the pipeline.

Premier Colin Barnett stated they would begin the tender process to find a development partner to design, build and operate the pipeline next month.

The successful bidder will be responsible for selecting a precise route through a 50-meter-wide corridor, consulting and negotiating with impacted landholders and for obtaining the required Native Title and Planning approvals.

The outcome of the tender process is not expected until mid-2013, with construction expected to begin mid-2014. Premier Barnett said he believes the construction period should take no longer than six months.

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