DBP executive chairman Stuart Hohnen said the consortium of owners – comprising DUET, Alcoa and Alinta – was pursuing an early commitment to the Stage 5 expansion.

“The Stage 4 expansion has met DBP’s obligation to spend at least $400m on expansion within five years and DBP is very keen to continue to expand the pipeline on commercial terms,” Hohnen said.

DBP was currently talking with prospective shippers to meet significant new demand that would support a further expansion of the pipeline. This new capacity is expected to be required between late 2007 and early 2009, nearly two years ahead of previous expectations.

Initial estimates indicate that costs for the Stage 5 expansion could be up to $1 billion, more than twice the cost of the current $430 million Stage 4 expansion.

The proposed Stage 5 expansion would provide a significant boost to the Western Australian economy as a substantial construction project as well as providing means of enabling other parts of the WA economy to continue to grow, DBP said.

Key milestones for a commitment to Stage 5 would involve:

• reaching agreement with stakeholders on design parameters relating to gas quality;

• finalising the engineering design and costing for the expansion;

• reaching agreement with shippers on potential modifications to contractual terms to ensure adequate compensation;

• obtaining support from its bankers for the necessary funding; and

• getting approval from the Regulator for the additional costs of the expansion, particularly those needed to accommodate changes to gas specifications.

DBP is majority owned by DUET – Diversified Utility and Energy Trusts – with Alcoa and Alinta being minority owners.