Western Australia Government Selects Corridor for Bunbury to Albany Gas Pipeline

The Western Australia State Government has selected a preferred corridor and operational model for a natural gas pipeline from Bunbury to Albany.

Premier and State Development Minister Colin Barnett and Regional Development Minister Brendon Grylls announced the Bunbury to Albany gas pipeline would service Manjimup and towns along the corridor, including Donnybrook, Bridgetown and Mount Barker.

“The Bunbury to Albany gas pipeline will deliver secure, reliable and safe energy to support future economic and population growth in the South-West and Great Southern regions,” Mr Barnett said.

“As well as making reticulated natural gas schemes possible for householders along the pipeline route, it will create new opportunities for existing industries and attract new investment.”

The Premier said the pipeline would be designed, built and operated by a private sector proponent. The State Government, through Verve Energy, would retain an interest in the project in conjunction with the successful proponent.

Expressions of interest from qualified companies will be called in early to mid-November.

The successful proponent would identify an easement up to 50m wide within the corridor and be responsible for consulting and negotiating with landholders and communities, and for obtaining relevant environmental, Native Title and planning approvals.

The pipeline will have minimal impact on the environment and private land use. Although the area will be protected under the Dampier to Bunbury Gas Pipeline legislation, activities such as cropping and grazing would still be permitted on land within the easement.

Mr Grylls said the pipeline would be built with capacity for further expansion to accommodate future gas requirements, including lateral pipelines to other regional centres such as Katanning, one of the initial nine Western Australian towns preparing for growth under the Regional Centres Development Plan (SuperTowns) program.

“Access to internationally competitive gas prices will drive investment in value-adding and export production, including in viticulture, agriculture, mineral processing and timber industries,” he said.

The Premier said the Government would co-fund the project through a mix of upfront capital and an ongoing subsidy. The cost of the project, and the extent of the Government’s financial contribution, would be determined as part of the tender process but early estimates were for a capital cost of $135million, inclusive of construction, reticulation and conversion of existing appliances.

Fact File

• Bunbury to Albany gas pipeline will be about 350km long
• Expected carrying capacity of 12 terrajoules of gas per day
• Preferred route would service more than 100,000 South-West and Gt Southern residents
• Preferred owner/operator to be selected by mid-2013
• State Development will manage tendering process and work with departments, including Regional Development and Lands; and Environment and Conservation

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LNG World News Staff, October 30, 2012; Image: Government of Western Australia