GAS

Epic to offer new deal to OFFGAR

As Epic Energy prepares to lodge its response to the Gas Access Regulator's decision on pipeline ...

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In a further bid to shore up support Epic said it also remains commited to its $1.00/$1.08/GJ proposal which will deliver the $840m expansions proposal of the DBNGP, of which more than $125 million has been spent.

Around $700 million of further expansion has been suspended until it is clear whether the new tariffs will cover the increased costs.

The lodging of the response is timely as the company is running out of time financially as a six-month extension by the banks on $1.85 million of loans runs out on September 16, meaning the company has its back to the wall.

Subsequently an alternative view based on the key findings made in the final decision will be put forward to the Regulator today, which is thought to say that Epic may be prepared to carry gas at a lower price than it originally demanded.

Rejection of the proposal would probably see Epic appeal to the Gas Review Board, however it could take up to a year for the board to make a ruling which may be too long for Epic's banks who could decide to sell the line immediately.

The other dilemma shadowing Epic is the interest the WA Government has had from potential buyers of the line while the government itself has been encouraging companies to build a new competing $1 billion dollar line.

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