ENE’s managing director, Chris Laurie said the signing of the PPA was a critical milestone in the delivery of the West Kimberley Power Project (WKPP), culminating extensive negotiations with Western Power.

Laurie noted that the project will also underwrite NE’s capability to develop the market for LNG in the Pilbara and Kimberley regions as an alternative fuel source to diesel, especially for road and rail transport.

“We expect this to be of particular interest to mining companies with large operations in the region”, Laurie added.

Western Power chief executive officer Harvey Collins said this was an excellent outcome for the West Kimberley Power Project.

"Although the contract negotiations took longer than expected, it was important that the many and complex issues were resolved for the benefit of all parties including the communities", he said.

Four of the five new power stations – Broome, Derby, Fitzroy Crossing and Halls Creek – will be gas-fired. The new power station at Looma, which will supply the Looma and Camballin communities, will operate on diesel.

Broome power station will be the first to be completed, targeted for December 2005, with the other power stations to be commissioned over the following six months.

"Eventually the existing stations will be closed. Western Power is helping displaced employees and their families secure their futures by helping them identify and develop career options through its Career Development Program."

EDL will build an LNG plant in the Maitland industrial estate about 20kms from Karratha and transport the gas by road to the West Kimberley communities where it will be stored close to the power stations. At Broome, the gas will be piped 11km from a storage facility on the outskirts of town to the power station.