DBP and Pipeline Information

DBP Transmission Group

DBP Transmission (DBP) is the trading name of the DBNGP group of entities. DBP is ultimately owned by:

• DUET - Diversified Utilities & Energy Trusts (since October 2004) - 60%
• Alcoa (since October 2004) - 20%
• Babcock & Brown Infrastructure (BBI) (since August 2007) - 20%

DBP owns and operates the Dampier Bunbury Natural Gas Pipeline: Project Manatement of major expansion projects including Stage 5B and IT services are outsourced to WestNet Energy Services Pty Ltd pursuant to an Operating Services Agreement.

ACCC Undertaking

DUET, Alcoa, BBI, DBP and Alinta Asset Management have provided undertakings (Consortium Undertakings) to the ACCC in relation to the acquisition and continued operation of the DBNGP.

These undertakings include assurances on the future expansion of the DBNGP, as well as ring fencing requirements to ensure that BBI and Alcoa associated companies which are shippers on the DBNGP are not treated differently to other shippers.

Further details on the Consortium Undertakings are available by clicking here:

• ACCC DBNGP Undertaking - October 2004
• ACCC Consortium Undertaking - October 2004

About the DBNGP

The DBNGP is the only natural gas pipeline connecting the Carnarvon Basin on Western Australia’s North-west Shelf with industrial, commercial and residential customers in Perth and the surrounding region. The pipeline runs from the Burrup Peninsula, near Dampier, to Bunbury in the south-west of the State.

Built by the State Energy Commission of WA (SECWA) with the support of Alcoa, the Dampier to Kwinana section of the pipeline was commissioned in 1984 with the extension south to Bunbury commissioned in 1985. In 1998 the State Government of Western Australia sold the pipeline to Epic Energy, and in October 2004 the pipeline was purchased by a consortium comprising DUET, Alcoa & Alinta. In August 2007 Alinta's 20% share was purchased by Babcock & Brown Infrastructure (BBI).

Since December 2006 the DBNGP has been interconnected with the Goldfields Gas Pipeline (GGP) allowing gas suppliers to deliver gas to customers along the GGP via the DBNGP.

Technical information:

• Mainline length - 1596 km
• Laterals length - 258 km
• Pipeline diameter - 660 mm (mainline), <500 mm (laterals).
• Pipeline Maximum Allowable Operating Pressure (MAOP) - 8.5 Mpa (mainline), 6.9 Mpa (laterals)
• Compressor Stations - 10
• Total installed compressor power - 225 MW
• Full haul transmission capacity (on completion of Stage 5A Expansion) approx. 785TJ/d

DBNGP Expansion Plans

The expansion of the DBNGP is a key focus of DBP.

Stage 4 Expansion

In May 2005 the DBP Board approved a $430 million expansion program - known as Stage 4 Expansion - comprising eight new compressors and over 200 kilometres of looping. This expansion was completed on time and within budget in December 2006.

Stage 5 Expansion

A further expansion of the DBNGP was announced by DBP on 1 September 2006 (known as Stage 5). The first component, Stage 5A commenced construction in late February 2007 and was substantially completed on-time and within the budget of $660 million by March 2008. Stage 5A comprised 10 loops, with a total length of 570 kilometres, adding around 100TJ/d of capacity to the DBNGP. The substantial completion of Stage 5A has meant that more than 50% of the length of the DBNGP has now been duplicated. Minor compressor station modifications are ongoing and expected to be completed during 2008.

A further expansion, known as Stage 5B has been approved by the DBP Board and will add a further 113  TJ/d of firm, full haul capacity.   This expansion will involve a further 440km of looping and some additional compressor station modifications. The estimated cost of Stage 5B is $690 million. Construction has commenced in early 2009, with commissioning of the final tranche of the additional capacity due to occur in the second half of 2010.

Refer to the Stage 5B page for further information about this expansion.