A statement this morning from Alinta said their consortium had been named as the preferred bidder for the purchase of the DBNGP and its associated assets.

“The receiver has advised the consortium that three bids were received that were sufficient to repay bank debt, however the consortium’s selection as preferred bidder was based on the greater certainty of its offer. The consortium’s bidding price is approximately A$1.86 billion (excluding transaction costs and proposed capital expenditure)”, said the Alinta statement.

Envestra’s last minute attempt to secure an extension to the bid deadline has been deemed unsuccessful with this morning’s news, along with offers put in by each of Babcock and Brown and Australian Pipeline Trust.

The limited conditions of the offer include finalising shipping arrangements and further due diligence, expected to take approximately three weeks. Alinta said further details regarding the terms of the sale would be announced then.

It said in the meantime, it expects to enter into sale and purchase agreements with the receiver this week.

Alinta Network Services will be the operator of the pipeline, however it said key commercial operations will be conducted within the asset vehicle to ensure no conflicts of interest exist. This is in keeping with undertakings agreed in principle with the Australian Competition & Consumer Commission and announced earlier this week.

Alinta said the consortium has obtained credit-approved debt funding for the acquisition from Citibank and Barclays.