90% of the gas from the Minerva field will be transported through the proposed pipeline.

SEA Gas, which is a 50/50 joint venture between Origin Energy and International Power, said it had succeeded in securing a $338 million facility comprising of a $214 million non-recourse loan and a $124 million equity bridge.

The money will be used to fund the initial construction costs and a stage expansion before 2007. The non-recourse loan will convert to a three-year bullet facility at the commencement of commercial operations in early 2004.

Origin told the market that the natural gas will initially be produced from Minerva and Yolla gas fields however the 680km pipeline would expedite the development of the Thylacine and Geographe gas fields.

The pipeline is expected to be in commercial operation by January 2004 and transport up 70 petajoules of gas per year, which is equivalent to 80 per cent of SA's annual gas demand.