Dampier-to-Bunbury Pipeline executive chairman Stuart Hohnen said this decision was made because several potential gas customers were still completing feasibility studies and were therefore unable to meet the final commitments deadline in the middle of this year.

In February, DBP announced that customers had requested a 375 terajoule per day expansion of the pipeline – comprising 310 TJ/d of full haul and 65 TJ/d of part-haul capacity.

Hohnen said DBP hoped to be able to give this work the formal go-ahead in the third quarter.

“Given the extremely tight deadline to meet initial gas demand from shippers, it is important to proceed with the Stage 5A immediately,” he said.

“Stage 5A will be a very significant expansion project, which will provide extra capacity for important projects such as Western Australia’s new baseload power station at Kwinana.

“The Stage 5A expansion project will increase loads to a similar degree to the current Stage 4 expansion, which is expected to cost about $430 million.”

Construction of Stage 5A, which comprises an additional 110 TJ/d of full haul and 80 TJ/d of part-haul capacity, is expected to start early next year, with gas delivery due in the first half of 2008.

The DBNGP is majority owned by DUET (Diversified Utility and Energy Trusts), with Alcoa and Alinta being minority owners.