Pilbara Pipeline System (PPS), Western Australia
PPS comprises three pipelines with an uncompressed capacity of approximately 186 terajoules per day. The Pilbara Energy Pipeline (PEPL) is a 219 kilometre pipeline connecting the Carnarvon Basin with power stations located in Karratha and Port Hedland, as well mining operations in the Pilbara region located on the Port Hedland to Telfer gas pipeline.
The 24 kilometre Burrup Extension Pipeline connects the PEPL to Woodside’s North West Shelf processing plant at Dampier.
The 80 kilometre Wodgina Lateral connects PEPL to the Sons of Gwalia tantalum mine at Wodgina.
PPS is adjacent to the Carnarvon Basin, Australia’s largest natural gas basin, and is well positioned to supply future loads in the strategic Pilbara region in Western Australia.
Contracted revenues
Revenues secured by take-or-pay contracts of varying terms with a number of industrial and mining customers including BHP Billiton, Newcrest Mining, Sons of Gwalia and the East Spar Joint Venture, Birla Nifty and, most recently Horizon Power, ensuring that the pipeline’s free-flow capacity is almost fully contracted until 2013.
Asset condition and remaining asset life
PPS was commissioned in 1996 and has no major ongoing capital expenditure requirements to maintain its current capacity. The remaining life of the pipeline should exceed 40 years with prudent ongoing maintenance and management.
Outlook
PPS is well positioned to take advantage of regional development in the future. The Pilbara is one of Australia’s richest regions in natural resources and is being promoted and developed by the Western Australian Government as a major industrial hub for the state.
Any significant development in the Pilbara region would be likely to lead to increased energy demands, which Epic Energy, through PPS, is well placed to fulfil. PPS is currently a free-flow pipeline, however its capacity can be increased through compression and/or looping to meet future increases in demand.
Epic Energy has received a number of enquiries relating to mineral processing opportunities which would be located along the length of PPS. Epic Energy will continue to work with all parties to develop these enquiries into firm transportation contracts where possible.
