The project attracted bids from four companies to replace Western Power power stations in Broome, Derby, Fitzroy Crossing, Halls Creek and Camballin-Looma.

All the proposals had nominated gas-fired power stations for Broome and Derby and gas or diesel generation for the smaller communities.

However, Western Power has now cut the bids from Burns and Roe Worley, and StateWest Power while entering into the negotiation phase with the remaining bidders, Energy Developments and Kimberley Power.

For both bids the gas required would be transported by truck or by pipeline. The trucks would carry compressed natural gas or liquefied natural gas.

A single bidder will be selected from the two companies with the aim of the project being improved power supplies for the next 20 years for the five West Kimberly communities, starting in 2005, and the introduction of a new fuel source into the region.

For Western Power, the outcome should significantly reduce its $20 million a year losses in the West Kimberley region.