In an update of the $600 million West Kimberly Power Project, WA’s power utility Western Power said contractor Energy Developments had asked for an extension after experiencing steel supply and approval hindrances. It was awarded the project in July.

A Western Power spokesperson said the project remained on budget, and no further delays were expected.

Rising prices and high demand for steel have troubled contractors this year, with some reporting lead times of up to 12 months. The cost of some steel-related products such as plate had also increased nearly 30% since April.

The spokesperson said power supply to the region remained “adequate”, but Western Power would monitor power demands and install additional generating capacity if needed.

The project to improve power infrastructure in WA’s north-west includes construction of five gas-fired power stations at Broome, Fitzroy Crossing, Halls Creek, Looma and Derby, and a liquefied natural gas plant at Karratha.

Construction of the Broome power station is now slated to begin early 2006 and completed by the end of the year.

The final station primed for construction at Derby was scheduled for an April 2006 start. It was expected to begin operations early 2007.