Question addresses gas supply concerns for the proposed Cockburn power station, focusing on Epic Energy's pipeline expansion capabilities and the impact of tariff regulations. The Minister assures that the tariff allows for economic expansion and suggests Epic Energy consider selling the pipeline if unable to expand it themselves.

AnsweredQoN 900Legislative Assembly
Asked
12 August 2003
Portfolio
Energy

QuestionView source ↗

I refer to the minister’s comments, reported in The West Australian of 21 June, that two issues need to be resolved before the proposed gas-fired power station in Cockburn can proceed; that is, finance and gas supply. If the financing arrangements are satisfactorily resolved, how does the minister envisage resolving the gas supply issue, given that Epic Energy will probably not be able to expand its capacity due to the Independent Gas Pipelines Access Regulator’s tariff ruling? Mr E.S. RIPPER

AnswerView source ↗

I say very clearly that the Independent Gas Pipelines Access Regulator’s decision will allow the pipeline to operate economically and is consistent with the economic expansion of the pipeline. The reason Epic Energy will not expand the pipeline has nothing to do with the tariff decision but is a result of its other financial difficulties. We should be very clear that the tariff decision in no way inhibits the economic expansion of the pipeline; it is Epic Energy’s other financial problems that inhibit its capacity to expand the pipeline. The situation is clear: if Epic Energy believes that it does not have the capacity to expand the pipeline, it should be thinking about selling the pipeline to someone with the capacity to expand it, because the tariff allows for the economic expansion of the pipeline. Plenty of other people in the pipeline industry share the view that the tariff will allow the expansion of the pipeline. Western Power continues to investigate financing options for the building and construction of Cockburn No 2 power station. Recent events have clearly shown that gas supply needs to be assured on a secure basis for all gas-fired power stations, including Cockburn No 2.
Mr E.S. RIPPER replied: I say very clearly that the Independent Gas Pipelines Access Regulator’s decision will allow the pipeline to operate economically and is consistent with the economic expansion of the pipeline. The reason Epic Energy will not expand the pipeline has nothing to do with the tariff decision but is a result of its other financial difficulties. We should be very clear that the tariff decision in no way inhibits the economic expansion of the pipeline; it is Epic Energy’s other financial problems that inhibit its capacity to expand the pipeline. The situation is clear: if Epic Energy believes that it does not have the capacity to expand the pipeline, it should be thinking about selling the pipeline to someone with the capacity to expand it, because the tariff allows for the economic expansion of the pipeline. Plenty of other people in the pipeline industry share the view that the tariff will allow the expansion of the pipeline. Western Power continues to investigate financing options for the building and construction of Cockburn No 2 power station. Recent events have clearly shown that gas supply needs to be assured on a secure basis for all gas-fired power stations, including Cockburn No 2.
I say very clearly that the Independent Gas Pipelines Access Regulator’s decision will allow the pipeline to operate economically and is consistent with the economic expansion of the pipeline. The reason Epic Energy will not expand the pipeline has nothing to do with the tariff decision but is a result of its other financial difficulties. We should be very clear that the tariff decision in no way inhibits the economic expansion of the pipeline; it is Epic Energy’s other financial problems that inhibit its capacity to expand the pipeline. The situation is clear: if Epic Energy believes that it does not have the capacity to expand the pipeline, it should be thinking about selling the pipeline to someone with the capacity to expand it, because the tariff allows for the economic expansion of the pipeline. Plenty of other people in the pipeline industry share the view that the tariff will allow the expansion of the pipeline. Western Power continues to investigate financing options for the building and construction of Cockburn No 2 power station. Recent events have clearly shown that gas supply needs to be assured on a secure basis for all gas-fired power stations, including Cockburn No 2.
The situation is clear: if Epic Energy believes that it does not have the capacity to expand the pipeline, it should be thinking about selling the pipeline to someone with the capacity to expand it, because the tariff allows for the economic expansion of the pipeline. Plenty of other people in the pipeline industry share the view that the tariff will allow the expansion of the pipeline. Western Power continues to investigate financing options for the building and construction of Cockburn No 2 power station. Recent events have clearly shown that gas supply needs to be assured on a secure basis for all gas-fired power stations, including Cockburn No 2.
Western Power continues to investigate financing options for the building and construction of Cockburn No 2 power station. Recent events have clearly shown that gas supply needs to be assured on a secure basis for all gas-fired power stations, including Cockburn No 2.

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