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NWS seeks to protect gas contracts

The third application by WAs gas suppliers to have new access arrangements for the Dampier-Bunbur...

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Woodside Petroleum, manager of the project, would not confirm the application saying any such application would be confidential. This latest application has added weight to calls for greater clarity surrounding access to the only pipeline from the gas reserves to the north, especially considering it has come from the powerful NWS venture.

The partners, comprising heavyweights such as ChevronTexaco, BP, BHP Billiton, Shell and the Mitsubishi/Mitsui consortium, are understood to be seeking assurances that existing contractual arrangements with customers will be maintained despite the overhaul of the access arrangements.

The Venture is currently negotiating a sales contract with Western Power worth around $1.4 billion.

The two other applications have come from Western Power and DBNGP pipeline owners Epic Energy, whose claims are based upon tariff charges and penalty issues.

Epic’s claims are well known, that is seeks to have a Perth gas tariff maintained at its current levels instead of the 25% reduction recommended by its nemesis, the Office of Gas Regulation. It has put the pipeline on the market, with bids due in by February 19.

Western Power is concerned it may be charged up to $35 million per year in penalty gas charges if it uses more gas than it is contracted to do, and is currently negotiating a new contract with Epic where their penalties are capped at around $5 million.

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