Gas Supplies at Kemerton

Kemerton Industrial Park is supplied by gas from the Dampier to Bunbury Natural Gas Pipeline (DBNGP).

The Park is fed through the Kemerton Gate Station on the DBNGP and a 150 millimetre diameter pipeline, which supplies Lyondell at 330 kPa and Simcoa at 300 kPa.

Capacity of the current 150 millimetre diameter pipeline is estimated at 0.56 terajoules per hour at current operating pressure and 1 terajoule per hour at maximum rated pressure.

The DBNGP is owned by a consortium of Macquarie Diversified Utility and Energy Trusts, Alinta and Alcoa. Alinta is the operator of the DBNGP and also owns the Kemerton spur line.

The Western Australian gas market has been deregulated since May 2004 meaning all gas consumers have freedom of choice regarding gas purchase arrangements.

Prices of gas are negotiable with major gas producers feeding the DBNGP.

A recent study entitled “Energy for Minerals Development in the South West Region” indicated a potential gas price range of between A$2.60 and A$3.70 per gigajoule for major consumers of gas in Australia’s South West.

Western Australia has extensive reserves of gas in the Perth, Carnarvon, Browse and Bonaparte Basins.

These reserves guarantee secure supply to industry in the South West of the State for in excess of 150 years.