Babcock & Brown Infrastructure

Dampier to Bunbury Natural Gas Pipeline

Dampier to Bunbury Natural Gas Pipeline (DBNGP) is Western Australia’s (WA) principal gas transmission pipeline. The pipeline is approximately 1,600 kilometres long and extends from Dampier to Bunbury in WA with a further 258 kilometres of laterals to customer locations.

DBNGP is the only natural gas pipeline connecting the Carnarvon and Browse Basins on WA’s north west shelf with industrial, commercial and residential customers in Perth and the surrounding regions.

On 11 April 2008, DBP announced a further expansion of the pipeline, to be known as Stage 5B, which will duplicate a further 440 kilometres of the pipeline. Construction is expected to commence in early 2009. The Stage 5A project (which duplicated 50% of the DBNGP mainline) was commissioned on time and within budget in April 2008.

Dampier to Bunbury Natural Gas Pipeline

Description

Natural gas transmission pipeline

Asset Class

Energy Transmission & Distribution

Location

Western Australia, Australia

Acquired

August 2007

BBI % Ownership

Up to 20% as at 31 December 2008

Regulatory Environment

A covered pipeline under the National Third Party Access Code. Current access arrangement approved by Western Australian Economic Regulation Authority runs until 31 December 2010. All revenue contracts operate outside the regulatory regime at tariffs higher than the reference tariffs until 2015.  From 2016 contract tariffs, but not terms and conditions, will be determined under the regulatory regime.

Customer Base

Contracts with blue chip counterparties in the gas retail, industrial, minerals processing and power generation sectors.

Capacity / Utilisation

Pipeline’s firm full haul capacity is fully contracted until at least 2019.

Key Drivers

Demand for natural gas. Economic growth in Western Australia.


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