The government indirectly paid for Alcoa's gas allocation during a shortage by reimbursing Alcoa's costs to switch to distillate fuel, making Alcoa's gas available for Western Power Corporation (WPC). The government did not directly purchase gas from Alcoa.

AnsweredQoN 2234Legislative Council
Asked
17 August 2004
Portfolio
Deputy Premier

QuestionView source ↗

(1) How much did the Government pay per litre for Alcoa’s gas allocation during the shortage last summer?
(2) How much per litre did the Government pay Alcoa to use diesel during the gas shortage last summer?

AnswerView source ↗

Answered
21 September 2004
Responded by
Minister for Local Government and Regional Development representing the Deputy Premier
Response time
35 days
During periods when WPC does not have sufficient transport capacity to meet its requirements for power generation, it can call on an agreement it has with Alcoa whereby Alcoa converts a portion of its operations from gas to distillate fuel, making gas and gas transport capacity available in the DBNGP for WPC's use. The agreement that WPC has with Alcoa involves WPC meeting all of Alcoa's costs associated with distillate use including replacement distillate, storage and cleaning. In answer to both Questions (1) and (2): WPC does not directly purchase gas or gas transport from Alcoa. The agreement operates such that WPC reimburses Alcoa the costs incurred to convert its operations from gas to distillate fuel, thus making an equivalent quantity of Alcoa's allocation of gas and gas transport available for WPC's use.
The agreement that WPC has with Alcoa involves WPC meeting all of Alcoa's costs associated with distillate use including replacement distillate, storage and cleaning. In answer to both Questions (1) and (2): WPC does not directly purchase gas or gas transport from Alcoa. The agreement operates such that WPC reimburses Alcoa the costs incurred to convert its operations from gas to distillate fuel, thus making an equivalent quantity of Alcoa's allocation of gas and gas transport available for WPC's use.
In answer to both Questions (1) and (2): WPC does not directly purchase gas or gas transport from Alcoa. The agreement operates such that WPC reimburses Alcoa the costs incurred to convert its operations from gas to distillate fuel, thus making an equivalent quantity of Alcoa's allocation of gas and gas transport available for WPC's use.
WPC does not directly purchase gas or gas transport from Alcoa. The agreement operates such that WPC reimburses Alcoa the costs incurred to convert its operations from gas to distillate fuel, thus making an equivalent quantity of Alcoa's allocation of gas and gas transport available for WPC's use.

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