Babcock & Brown Infrastructure

AlintaGas Networks

AlintaGas Networks (AGN) is the largest distributor of natural gas in Western Australia. With over 12,176 kilometres of distribution pipe, AGN delivers approximately 31.5 petajoules of gas per annum to over 600,000 (mainly residential) end users across three separate networks:

  • mid west and south west Gas Distribution System, feeding the greater metropolitan area of Perth, Geraldton and the residential corridor south of Perth to Busselton;
  • Kalgoorlie Distribution Network, which services customers in Kalgoorlie-Boulder from gas transported by the Goldfields Gas Transmission Pipeline; and
  • Albany Distribution Network, which distributes LPG to Albany from a LPG plant.

AGN’s growth is to a large extent linked to upside of the commodity cycle in Western Australia demonstrated by a buoyant housing market and strong demand for gas from the commercial and industrial sector.

AlintaGas Networks

Description

Natural gas distribution networks

Asset Class

Energy Transmission & Distribution

Location

Western Australia, Australia

Acquired

August 2007

BBI % Ownership

74.1%

Regulatory Environment

Tariff and access arrangements are regulated by the Western Australian Economic Regulation Authority.

The current access arrangement will be reset on 1 January 2010 under the new Gas Law and Rules on a building block basis expected to be broadly consistent with the previous reset. Work is progressing well towards the submission of a new proposed access arrangement by 31 March 2009.

Customer Base

Revenue received from retailers who supply gas to customers over the network. Alinta Sales Pty Limited is the largest retailer using the network.

Capacity / Utilisation

Gas market in metropolitan Western Australia is relatively mature with penetration rates of approximately 80%.

Key Drivers

Residential gas demand is weather dependent. Growth in new connections is linked to new housing construction. Commercial and industrial growth is linked to the Western Australian economy.


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