Now expected to cost up to $275 million, the WKPP involves the production of LNG near Karratha, which would then be trucked to remote power stations in Broome, Fitzroy Crossing and Derby.

Managing director Chris Laurie said on Friday that Energy Developments' Looma diesel-fired plant, located about 200km east of Broome in Western Australia, had now come online following a seven-day trial.

“The successful commissioning of the diesel-fired power station at Looma and the commencement of commercial operations are significant steps for the West Kimberley Project and bode well for the commissioning of the remaining power stations,” he said.

Laurie said progress was also being made at the Broome, Derby and Fitzroy Crossing and Halls Creek power stations.

In April, the company was forced to evacuate workers from its Karratha LNG plant and three of the power stations due to wet weather brought by several cyclones.

Since that time though, Energy Developments says the LNG plant has achieved a number of significant milestones, including the commissioning of the high-pressure pipeline from the Dampier-Bunbury to the plant.

Commissioning of the plant is expected to continue over the next eight weeks, with the first LNG to be made available in August, it said.

But the company did warn that this was still just a prediction.

“The remaining risks to the construction schedule include the continuing shortage of construction resources and accommodation, especially at Karratha, the receipt of final operating licences and the emergence of any major issues in the remaining LNG plant commissioning phases,” it said.

For the third time, Energy Developments has upwardly revised the expected budget of the WKPP to between $265 million and $275 million.

The latest cost blow-out follows April’s 15% increase and last year’s 23% increase in the original budget of $150 million to $185 million.