DBP Development Group

 

Business Description

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

The pipeline development team that DDG has access to, has been one of the leading developers of new gas transmission pipeline infrastructure across Australia.

The gas transportation requirements in Western Australia are currently undergoing significant change with new domestic gas production facilities about to come on line in the north west of the state and resource projects in the Pilbara 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 main Dampier Bunbury Natural Gas Pipeline (DBNGP) and DDG has looked to capitalise on these growth opportunities for the benefit of DUET’s securityholders. 

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. Construction of the WAWP took 8 months to complete and was commissioned in late December 2014 despite losing six weeks due to a 1 in 100 year major wet weather event. The pipeline is designed to provide an initial capacity of up to 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 with its’ joint venture partner, TransAlta, commenced construction on the FRGP in July 2014 and completed the pipeline in March 2015. The FRGP comprises a 270km, 16 inch pipeline and runs from the DBNGP’s Compressor Station 1 to the Solomon Hub. The pipeline will supply natural gas to the 125MW Solomon Power Station which services Fortescue Metals Group’s mining operations in the region. At the time of its construction, the FRGP was the longest gas pipeline built in Western Australia in the past 10 years. The project is underpinned by a 20 year 100% take-or pay gas transportation agreement between the joint venture and FMG Pilbara Pty Ltd.

In the Pipeline

Ashburton Onslow Gas Pipeline (AOGP)

DDG is currently undertaking a shipper-funded construction project to build, own and operate the 24km AOGP gas transmission pipeline on behalf of Chevron Australia. The AOGP is expected to be completed in December 2015. The AOGP is designed to provide 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 the Wheatstone’s State Development Agreement. The new 9MW Onslow Power Station is expected to be commissioned in 2016, upon which the DDG gas transportation agreement with Horizon Power will become effective. 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.

North Eastern Gas Interconnector (NEGI)

In April 2015, DDG was shortlisted as one of four proponents by the Northern Territory Government to participate in the Request For Final Proposal (RFFP) phase to build, own and operate the proposed North Eastern Gas Interconnector gas transmission pipeline. RFFP’s are due by 30 September 2015. The proposed Northern Territory pipeline will facilitate the development and commercialisation of the Northern Territory’s extensive gas reserves by providing access to East Coast markets.