Comprising Alinta, Alcoa and Diversified Utility & Energy Trusts (DUET) the group submitted its bid after agreeing to respective equities of Alinta 20%, Alcoa 20% and DUET 60%.
Despite complaints from several competing bidders the ACCC said that it would not intervene in the bid subject to the finalisation of undertakings which have been agreed in principle.
Consortium spokesman Bob Browning, the CEO of Alinta, said the consortium had consulted with the ACCC at various times over the past 12 months.
“Through this process we have refined the consortium structure to address the ACCC's
concerns,” Browning said.
The consortium’s undertakings include expanding the capacity of the pipeline; ringfencing Alinta from negotiations with other shippers; and a commitment not to seek revocation of coverage of the pipeline under the Gas Access Code
Alinta’s equity commitment to the bid would be funded from internal cash reserves while the newly listed DUET has already stated that future investments may be funded by the issue of further DUET stapled units and/or POWERS units.
Meanwhile Envestra is seeking a short extension to finalise its bid for the pipeline despite previously announcing it would be ready by 27 August.
“I have contacted Martin Madden, the Receiver, and the Hon Eric Ripper, the WA Minister for Energy, to formally advise them that Envestra is seeking a short extension of time to finalise its bid for the pipeline", said Ian Little, managing director.
"For some time now we have been working towards submitting a bid with a minimum number of conditions, so as to ensure that the sale of the pipeline could be concluded without further delay. Despite our best efforts, we have been unsuccessful in achieving this position in time to submit a bid today. I have, therefore, assured Mr Madden and the Minister that I will dedicate all available resources to complete our bid preparations as a matter of the highest priority."
"As of today further work needs to be done to satisfy us that we can submit a bid with minimum conditions," added Little.
"We have rejected the option of submitting a highly conditional bid that would elongate the sale process."
