❓ Question regarding delays and cost implications of the Muja AB power station refurbishment, including Kempe Group's withdrawal and a boiler incident. The Minister provides some answers, citing commercial-in-confidence for some details.
AnsweredQoN 694Legislative Council
QuestionView source ↗
MUJA POWER STATION — REFURBISHMENT
694. Hon KATE DOUST to the Minister for Energy:
I refer to the article in The
West Australian of Wednesday, 12 September 2012 regarding the Muja AB
refurbishment.
(1) Is the
minister aware of the reason for Kempe Group quitting the joint venture; and,
what is the reason or reasons?
(2) Does this action
expose Verve Energy to additional risks and costs; and, if so, what
specifically are those additional risks and costs?
(3) Can the
minister confirm that the Muja refurbishment will not be ready by 1 October
2012, as promised; and, if so, when will it be ready?
(4) How much will
Verve be penalised in daily capacity penalties because the Muja refurbishment
will not be ready on time?
(5) Can the
minister confirm that in a recent test of the Muja plant a boiler exploded and
a worker was injured?
694. Hon KATE DOUST to the Minister for Energy:
I refer to the article in The
West Australian of Wednesday, 12 September 2012 regarding the Muja AB
refurbishment.
(1) Is the
minister aware of the reason for Kempe Group quitting the joint venture; and,
what is the reason or reasons?
(2) Does this action
expose Verve Energy to additional risks and costs; and, if so, what
specifically are those additional risks and costs?
(3) Can the
minister confirm that the Muja refurbishment will not be ready by 1 October
2012, as promised; and, if so, when will it be ready?
(4) How much will
Verve be penalised in daily capacity penalties because the Muja refurbishment
will not be ready on time?
(5) Can the
minister confirm that in a recent test of the Muja plant a boiler exploded and
a worker was injured?
AnswerView source ↗
I thank the honourable member for some
notice of this question.
(1) I am
advised that this information is considered commercial-in-confidence.
(2) The
Vinalco joint venture is structured such that if either joint venture partner
elects to sell its share in the joint venture, the other partner is not exposed
to additional risk or costs.
(3) Each of
the four Muja AB units will be progressively completed between October 2012 and
December 2012.
(4) The
Vinalco joint venture, of which Verve Energy represents 50 per cent and Inalco
Energy 50 per cent, will be required to pay capacity credit refunds to the
Independent Market Operator. The estimated refunds are $25 000 per unit for
each day.
(5) A boiler
tube failure occurred during the commissioning of one of the Muja AB units. A
nearby worker suffered minor burns and returned to work the next day. The
safety of all personnel is top priority; therefore, further work is being
undertaken on all four boilers, which has resulted in the delay to completion.
notice of this question.
(1) I am
advised that this information is considered commercial-in-confidence.
(2) The
Vinalco joint venture is structured such that if either joint venture partner
elects to sell its share in the joint venture, the other partner is not exposed
to additional risk or costs.
(3) Each of
the four Muja AB units will be progressively completed between October 2012 and
December 2012.
(4) The
Vinalco joint venture, of which Verve Energy represents 50 per cent and Inalco
Energy 50 per cent, will be required to pay capacity credit refunds to the
Independent Market Operator. The estimated refunds are $25 000 per unit for
each day.
(5) A boiler
tube failure occurred during the commissioning of one of the Muja AB units. A
nearby worker suffered minor burns and returned to work the next day. The
safety of all personnel is top priority; therefore, further work is being
undertaken on all four boilers, which has resulted in the delay to completion.
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