LNG (LIQUIFIED NATURAL GAS)

Hiccup at WKPP

BROOME was temporarily without power last Thursday, following problems with this portion of the Energy Developments-owned West Kimberley power project.

Hiccup at WKPP

Energy Developments said this morning that the power outage was caused by the delivery of a volume of out-of-specification gas from the Broome fuel storage facility to the power station, at which point the generators were unable to maintain the required electrical load.

The incident was investigated and Energy Developments said it has taken steps to avoid a recurrence.

When the outage occurred, the power station was on day 41 of its 60-day reliable operations (RO) test, which requires the power station to supply electrical power within certain quality and reliability limits.

Liquefied natural gas is transported via purpose-built trucks to this and several other power stations in the West Kimberley region.

Managing director Greg Pritchard said the supply interruption and impact on the 60-day RO test and current half-year earnings was disappointing and belied the fact that the power station and supporting infrastructure had been operating well.

"The Broome Power Station has been operating reliably and the LNG plant and LNG road transport assets are operating well," Pritchard said.

"Initial investigations indicate this event has been an isolated incident."

Pritchard said that the company's market guidance for earnings before interest, tax and depreciation and amortisation (EBITDA) for the financial year ending June 30, 2008, remained in the range of $100-105 million, subject to several conditions.

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