| OIL
& GAS - Dampier Bunbury Pipeline Expansion
Dampier Bunbury Pipeline (DBP)
will go-ahead with a $700 million expansion of the Dampier to Bunbury
Natural Gas Pipeline (DBNGP). The Stage 5A expansion is the second
major expansion of the DBNGP since the consortium of owners took
over the pipeline in October 2004. As with the Stage 4 expansion,
all the additional capacity will be fully contracted to new and
existing shippers under long term arrangements.
Combined, the Stage 4 and Stage
5A expansions represent an investment of about $1.13 billion in
the pipeline. Construction of this latest expansion is expected
to begin early next year with the first capacity to be commissioned
during the first quarter of 2008, with the balance by the third
quarter of the same year. The expansion will increase production
by about 100 terajoules per day (TJ/d).
Stage 5A comprises the laying
of additional pipe alongside the existing pipeline in a process
known as looping. Stage 5A comprises ten loops totalling in excess
of 570 km. Stage 5A will be the first of a proposed 3 part expansion
of the pipeline, known as the Stage 5 expansion. Timing of Stages
5B and 5C is dependant on a range of issues, including the price
and availability of gas to support new resource processing and power
generation developments.
Saipem has been awarded the turn-key
contract for the the design, construction, installation and pre-commissioning
activities of the Stage 5A expansion.
JFE Steel Corporation and Metal
One Corporation have been appointed as the sole suppliers of line
pipe for the expansion project. The two companies will supply approximately
82,000MT of 26" OD API 5L X-70 Line Pipe to DBNGP (WA) from
October-November 2006.
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 –
Diversified Utility and Energy Trusts - with Alcoa and Alinta minority
owners.
|