CONSTRUCTION work has officially begun on the next phase of the Dampier-to-Bunbury Natural Gas Pipeline.
Some of the Dampier to Bunbury Natural Gas Pipeline distribution facilities.
Expected to cost $700 million, Stage 5A will be the first of a proposed three-part expansion of the pipeline.
It involves building an additional 570km of parallel pipes (looping) as well as further modifications to compressor stations. First delivery of the additional 100TJ of gas transmission capacity is expected in the first quarter of 2008.
The owners of the pipeline will today join Western Australian deputy premier Eric Ripper to officially launch the next phase.
This follows completing the $430 million Stage 4 expansion, which involved installing eight compressors and 217km of additional looping to increase capacity by 100TJ.
DBP executive chairman Stuart Hohnen said the combined Stage 5 expansion would cost about $1.1 billion and involved the employment of up to 700 people.
"Before the purchase of the pipeline by DBP just over two years ago, the DBNGP was facing significant unmet demand resulting in new projects and project expansions being delayed," he said.
"Major industrial projects, estimated to be worth $3.5 billion, are dependent on the completion of the pipeline's expansion."
DBP is majority owned by DUET (Diversified Utility and Energy Trusts), with Alcoa and Alinta as minority owners.