Epic Energy chief executive David Williams told WestBusiness that an extension to the pipeline to lift capacity by 20% could not be completed before late 2005 and would cost around $300 million.

"Even if we started now, that takes us to the end of 2005. That's when people are screaming for that capacity and we just want to get on with it because we can see there's going to be a shortfall," Williams told WestBusiness.

Complicating the situation is Epic's ongoing asset sale, which have made it impossible to plan for any future construction. Epic is also in the middle of negotiations concerning tariff and offtake agreements with the pipeline's major customers Alcoa, Alinta and Western Power, which are considered crucial to a successful sale of the DBNGP.

Currently Epic appears to have sealed an agreement with Alcoa to charge a reduced tariff from 2005 but tying the alumina giant into contributing to debt servicing, capital and on-going operating costs associated with any expansion to its share of pipeline capacity.

Agreements with Western Power and Alinta look to be a further off, with Alinta also actively involved in a consortium bid for the pipeline.