The agreement is expected to create approximately 160 new Western Australian jobs during the construction phase.
The Wheatstone Ashburton West Pipeline Project will link the Wheatstone Project’s domestic gas plant to DUET’s majority-owned Dampier to Bunbury Natural Gas Pipeline (DBNGP).
The project is expected to be completed by the fourth quarter of 2014 at a total cost of $US85 million and includes:
- Refurbishment of DBP Development Group’s existing 87 km, 10 in, pipeline from Ashburton West to Compressor Station 2 on DBNGP;
- Construction of an 87 km, 16 in, loop alongside the existing 10 in pipeline;
- Construction of a new 22 km, 16 in pipeline, connecting Ashburton West to the Wheatstone Project’s domestic gas plant; and,
- An initial 30-year 100 per cent take-or-pay gas transportation contract between DBP Development Group and Chevron Australia.
The project will provide an initial forward gas transmission capacity of 337 TJ/d with future expansion capacity of up to 600TJ/d.
DBP’s chief executive officer Stuart Johnston said the agreement provides the opportunity to work on one of Australia’s largest resource projects and to create employment opportunities in Western Australia. “We are pleased to have been awarded the domestic gas pipeline contract for the Wheatstone Project and to have the opportunity to create local jobs,” Mr Johnston said.
“During the construction phase, the project will employ around 160 people in Western Australia, and more than 75 per cent of the overall project costs will be spent in Australia.
“DBP prides itself as being a safe and reliable developer, owner and operator of critical pipeline infrastructure in Western Australia and we will maintain our high standards on this project.”
DUET has enlisted law firm Allens to advise, and the firm is also assisting in raising an associated $US92 million capital.
The Wheatstone Project is a joint venture between the Australian subsidiaries of Chevron (64.14 per cent), Apache Energy (13 per cent), KUFPEC (7 per cent), Shell (6.4 per cent), and Kyushu Electric Power Co (1.46 per cent), together with PE Wheatstone Pty Ltd (part owned by Tokyo Electric Power Co, 8 per cent).
DBNGP is the only natural gas pipeline connecting the Carnarvon Basin at 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 southwest of the state. The total length of the mainline is 1,596 km, with laterals totalling 258 km. DBP Transmission , the owner and operator of the project, has long-term has transportation contracts in place until at least 2019 with all of the major gas shippers on the pipeline.