AGIG Files 2021-2025 Plan for West Oz Pipeline

Australian Gas Infrastructure Group (AGIG) has presented to regulators a final plan to support continued gas deliveries via the Dampier to Bunbury pipeline (DBP) in Western Australia.

The plan, covering activities and investment between 2021 and 2025, was submitted to Western Australia’s Economic Regulation Authority (ERA), AGIG said on January 23, following an 18-month consultation period with the pipeline’s customers. The plan is aimed at “maintaining strong safety, reliability and service performance with lower revenues and costs,” the operator said.

“The plan also puts in place measures to support the DBP continuing to deliver gas to an evolving Western Australian energy market well into the future,” AGIG said.

Compared with the previous planning period, the pipeline is set to see an 8% reduction in expenditure to $53mn, but a 13% decline in revenues.

“Over the five-year period, we will deliver a standalone communications infrastructure for the northern section of the pipeline, and replace 25 control systems on compressor units and gas engines,” AGIG CEO Ben Wilson said. “With interest rates at historic lows, our financing costs have also reduced. This is a key driver of the reduction in revenue of $241mn and the benefits of this have been passed on to customers.”

Launched in 1985, the 1,600-km DBP connects gas fields in Western Australia’s northwest with consumers further south. The ERA is due to complete its review of the plan by the start of 2021, AGIG said.