Albany gas in the pipeline

Albany could be connected to reticulated gas by 2015, according to Premier Colin Barnett.

The State Government released details of the long-awaited Bunbury to Albany gas pipeline on Monday morning after a State Cabinet meeting in Albany.

The Premier and Regional Development Minister Brendon Grylls announced the Government had selected a preferred corridor and operational model for the 350km pipe, which now has an estimated cost of $135 million – much less than the once-anticipated $450 million. The reduced cost is due to the pipeline’s smaller diameter, at 150mm, which can carry 12 terajoules of gas per day, less than the 50 terajoules per day originally mooted.

Mr Barnett said capacity could be “easily expanded” to meet future growth. The pipeline would service Mt Barker and several other towns including Manjimup, Donnybrook and Bridgetown, and would also have the capacity to branch from Mt Barker to Katanning in the future, potentially also servicing towns on that route such as Cranbrook and Kojonup.

Mr Barnett said a tender for the construction of the project would be awarded by mid-2013 with construction to begin mid-2014.

He estimated construction would take less than six months, suggesting the pipeline could be operational by the start of 2015.

The pipeline was a 2008 Liberal Party election pledge to reduce Albany’s reliance on bottled gas and construction was to begin by the end of 2012. Opposition Leader Mark McGowan said yesterday’s news was a late announcement and a broken promise.“On top of that, as I understand it here is a significant cost to householders in Albany if they connect to natural gas which I don’t think has been factored into this promise,” Mr McGowan said.

Mr Barnett conceded the Government had technically broken its promise but did not expect a backlash from the marginal Albany seat in the State election.

He said there would be substantial savings to households connected to the pipeline. The pipeline is to be designed, built and operated by a private sector proponent with the Government retaining an interest through Verve Energy.

The Premier said the successful proponent would identify an easement up to 50m wide within the identified corridor and be responsible for consulting and negotiating with landholders and communities, and for obtaining relevant environmental, native title and planning approvals.

“The Government will co-fund the project through a mix of upfront capital and an ongoing subsidy,” he said.

“The cost of the project and the extent of the Government’s financial contribution will be determined as part of the tender process, but early estimates are for a capital cost of $135 million, inclusive of construction, reticulation and conversion of existing appliances.”