Completion of Third Pipeline Expansion Project to Meet the Energy Needs of Western Australia

January 05, 2010

DBP Transmission (DBP), the owner and operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) has announced practical completion of the Stage 5B Expansion Project.

Stage 5B represents the culmination of a three stage expansion programme which has seen $1.7 billion invested in the DBNGP since DBP assumed ownership in 2004.

The key features of this expansion programme are:

  • The pipeline’s capacity has increased since 2005 by over 50% to meet gas demand in the South West and Pilbara regions of Western Australia.
  • Through these expansions, DBP has been able to meet the delivery schedules and supply lead times of its customers.
  • Increased reliability of the services delivered on the DBNGP, further enhancing the asset’s ability to continue an outstanding track record of supply security.
  • Over $2 billion of industrial investment in Western Australia has been directly supported through these expansions; and
  • Two thirds of the total expansion programme’s capital expenditures are estimated to have been spent in Australia.

The Stage 5B Expansion Project has improved reliability and increased the pipeline’s firm full haul capacity by around 110 terajoules per day. Construction commenced in early 2009 and predominantly involved looping, which is the installation of new pipe lengths parallel to the existing pipeline. Stage 5B saw 440km of parallel pipe installed along the almost 1,600km length of the DBNGP. The project also required upgrade works on the pipeline’s compressor station facilities.

DBP’s CEO Stuart Johnston said forecast total project expenditure to completion is estimated to not exceed $675m, as compared to the approved capital budget of $690m.

“Stage 5B has been a major success for DBP and its project partners and we have achieved practical completion of the expansion on schedule and within budget,” Mr Johnston said.

The project’s safety record far exceeded the industry standards. Over two million man hours were worked and over ten million kilometres driven during the course of the project without any significant injury or vehicle incident.

“The completion of the project is also of major significance to the State, with the extra gas transmission capacity, and enhanced reliability of services crucial in ensuring continued economic growth in WA.”

“The Stage 4, Stage 5A and Stage 5B expansions were all carried out in direct response to the increased demand for gas for power generation and industrial processes associated with ongoing economic growth in WA,” he said.

“DBP’s $1.8 billion investment since 2005 – a doubling of the asset value in only five years – has been crucial in supporting the WA economy by ensuring the asset is responding to the energy needs of the State on time and with minimal cost increases to customers.”

“As a result of these three projects, the firm full haul capacity has been increased by more than 300 terajoules per day and around 85 per cent of the DBNGP between the North West Shelf and Bunbury is now duplicated, effectively creating a second pipeline to further improve reliability of supply.”

“These projects were all carried out in response to customer requirements. They were planned and executed to ensure that gas was available when it was needed for those customers’ projects and DBP remains ready and able to meet the future gas transmission needs of the State.”

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