Future plans in WA to lower costs without compromising service
Lower revenue, lower costs and maintaining strong safety, reliability and service performance are the focus of proposed future plans announced today for Western Australia’s Dampier to Bunbury Natural Gas Pipeline (DBNGP) and its customers out to the year 2025.
The pipeline – part of the Australian Gas Infrastructure Group (AGIG) – is the backbone of the WA economy, linking the gas fields in the State’s north-west directly to mining, industrial, and commercial customers.
AGIG’s Chief Customer Officer, Andrew Staniford, said the Draft Plan released today outlines DBNGP activities and expenditure proposed to be undertaken from 2021 through to 2025.
Mr Staniford said the Plan proposes a $74 million cut in total expenditure, and a $130 million cut in revenue compared to the previous planning period.
“What we are proposing is to lower our costs by 11% and reduce our revenue by 7%, without compromising on safety, reliability or service. We believe this is good news for customers, and for Western Australia,” he said.
The Draft Plan has been prepared in consultation with customers and stakeholders to ensure it is in the long-term interests of customers.
“We have directly engaged with customers to shape this Draft Plan which we have released today for consultation six months ahead of lodging our Final Plan formally with the regulator,” Mr Staniford said.
“The feedback we have already received from our customers told us that price and the reliability of our service are fundamental for fueling economic growth in Western Australia. We have listened and we are keeping costs down, while continuing to deliver on customer expectations for service,” he said.
“The Draft Plan provides an opportunity for our customers and stakeholders to understand and comment further on our detailed approach before we submit our Final Plan to the Economic Regulation Authority (ERA).”
AGIG will formally lodge its plans with the ERA by 1 January 2020 in the form of a revised Access Arrangement for the 2021-2025 period.
AGIG is inviting submissions on the Draft Plan by 28 June 2019.
Australian Gas Infrastructure Group (AGIG) has approximately 2 million customers across every mainland state and the Northern territory, 34,000kms of distribution networks, over 3,500kms of gas transmission pipelines, and 42 petajoules of gas storage capacity. AGIG’s vision is to be the leading gas infrastructure business in Australia – by delivering for customers, being a good employer, and being sustainably cost efficient.
In 2017, Australian Gas Networks (AGN), Dampier to Bunbury Pipeline (DBP) and Multinet Gas Networks (MGN) came together to form AGIG. The combined distribution, transmission and storage assets make AGIG one of the largest gas infrastructure businesses in Australia. 2
AGIG has a strong record of performance, delivering over $2 billion worth of projects on time, on budget and with safety apriority. A recent example of major project success is the Tubridgi Gas Storage facility in Western Australia. Completed in September last year, Tubridgi Gas Storage is Western Australia’s largest underground gas storage facility. It has improved storage services for natural gas shippers, and also improved supply security and reliability in the Western Australian gas market.
For further information please contact:
Andrew Staniford, Chief Customer Officer, Australian Gas infrastructure Group
T (08) 8418 1125
John Field, Field PR
T (08) 8234 9555
M (0418) 819 527