The gas pipeline owner told the West Australian that it has held discussions with key WA gas users about gas transport pricing. It is believed the negotiations included a number of manufacturers such as gas provider Alinta and Western Power.

Epic Energy has proposed a deal to circumvent the WA gas regulator's recent price ruling, in a bid to financially justify a $300m pipeline expansion plan. Under the proposed deal, the gas users would pay Epic Energy up to about 10% more than stipulated in the ruling. WA Energy Minister Eric Ripper said that the deal appeared not to breach national gas access rules.

The expansion is desperately needed to supply the state's future fuel demands, with Western Power already struggling to find a suitable supply for its planned Kwinana power station. Epic is currently refusing to expand the pipeline unless it can raise transport prices.

The new price regime would apply to all existing contracts and new ones, while Epic chief David Williams admitted to the West Australian newspaper the move would amount to deregulation of what was a regulated pipeline.

Epic has until July 4 to respond to the regulator's latest price decision on how it would accommodate his ruling in the rates it charges.