DBP Development Group

 

www.dbp.net.au/ddg


DBP Development Group (DDG) was created to leverage the world-class pipeline engineering and operating skills of DBP’s management team to provide opportunities for DUET to deploy capital in accretive opportunities that would see DDG build, acquire, own and/or operate new pipelines and laterals and related gas infrastructure.

The development team at DBP has been one of the leading developers of new gas transmission pipeline and related gas infrastructure across Australia.
 
The Western Australian gas transportation requirements have undergone significant change in recent years, with a number of new domestic gas production facilities having come on line in the north west of the state. At the same time, recent increases in demand for gas has shifted from the industrial region in the south west of the state to now being required to support resource projects in the Pilbara, which are looking to switch from diesel to lower cost natural gas for their energy needs.

DDG has a strategic advantage when exploring pipeline development opportunities that would ultimately connect to the Dampier Bunbury Natural Gas Pipeline (DBNGP) and DDG has capitalised on these growth opportunities for the benefit of DUET’s securityholders.


Snapshot
Ownership Interest 100% 
Revenue ($ million) 37
EBITDA ($ million) 32

DDG's latest results are contained in the latest Management Information Report.

Completed Projects

Wheatstone Ashburton West Pipeline (WAWP)

WAWP comprises DDG’s existing 87km 10 inch Tubridgi Lateral, a newly constructed 87km, 16 inch pipeline, a new 22km 16 inch pipeline, and facilities connecting the Wheatstone Domgas Plant to the DBNGP at Compressor Station 2. The pipeline construction was completed on time and within the set budget cap of $102 million and was commissioned in late December 2014. The pipeline is designed to provide an initial capacity of in excess of 300TJ per day with future expansion capacity of up to 600TJ per day to the WA domestic gas market. The project is underpinned by a 100% take-or-pay gas transportation agreement with Chevron Australia based on an initial revenue of $14 million per annum for a period of 30 years with two extension options of ten years each.

Fortescue River Gas Pipeline (FRGP)

DDG, in conjunction with its joint venture partner, TransAlta, completed construction of the 270km, 16 inch FRGP in March 2015. The FRGP runs from the DBNGP’s Compressor Station 1 to the Solomon Hub. The pipeline supplies natural gas to the TransAlta-owned 125MW Solomon Power Station which services Fortescue Metals Group’s mining operations in the region. The project is underpinned by a 20 year 100% take-or-pay gas transportation agreement between the joint venture and FMG Pilbara Pty Ltd.

Ashburton Onslow Gas Pipeline (AOGP)

In June 2016 DDG completed the construction of a shipper-funded project to build, own and operate the 24km AOGP gas transmission pipeline on behalf of Chevron Australia. The AOGP provides a firm gas transportation service to Horizon Power’s proposed Onslow Power Station. The project is part of Chevron’s Onslow Power Infrastructure Upgrade project under Wheatstone’s State Development Agreement. The new 8MW Onslow Power Station is expected to be commissioned in late 2017. The transportation agreement is on the basis of a 100% take-or-pay revenue of $0.6m per annum for an initial period of 20 years with two extension options of five years each.The AOGP comprised more than 50,000 manhours of construction work without a single lost time injury.

Gorgon Meter Station Refurbishment Project (GMSR)

During FY2016 DDG undertook and completed shipper-funded works to undertake valve refurbishment work on the Gorgon Meter Station.

 

Operation and Maintenance

Gorgon Onshore Pipeline 

In 2014 DDG was awarded an initial nine year contract to maintain the onshore gas transmission pipeline and metering station for the Chevron Australia-operated Gorgon Project. DDG’s strength in engineering, and operating and maintenance of pipeline networks have further strengthened its relationship with Chevron Australia.

Maitland Lateral

DDG resumed the maintenance of the Maitland Lateral in May 2016. The lateral is owned by EDL for its LNG processing plant in the Pilbara.

Onslow Gas Pipeline

Since 2012, DDG has continued to foster a strong relationship with Horizon Power through the provision of operation and maintenance of its pipeline in Onslow.

Financial summary

$ million 
Year to 30 June 2016 Year to 30 June 2015
Transmission revenue 34 13
Total revenue 37 13
EBITDA 32 9


Operational Overview

  Year to 30 June 2016 Year to 30 June 2015
Occupational health and safety
Lost time injuries 0 0
Total recordable injuries 10.1 5.9