March 31, 2016
Alcoa to sell 20 per cent stake in Dampier to Bunbury Natural Gas Pipeline to DUET Group
Alcoa of Australia (Alcoa) today announced it has agreed to sell its stake in DBP, the owner and operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP) to DUET Group (DUET). DBP is currently owned 20 per cent by Alcoa and 80 per cent by DUET (in aggregate).
As part of the transaction Alcoa will maintain its current access to approximately 30 per cent of the DBNGP transmission capacity for gas supply to its three alumina refineries. Alcoa is Western Australia’s largest user of natural gas and biggest pipeline customer.
“DUET is an experienced energy infrastructure asset owner and together with the DBP management team they are committed to the ongoing success of the pipeline,” said Alcoa of Australia Chairman and Managing Director Michael Parker.
“Collectively we have established a secure and valuable asset which will serve Alcoa’s business and the State’s other natural gas consumers extremely well for many years to come.”
Alcoa has a long and proud history of association with the DBNGP, having partnered with the Western Australian government to underwrite the pipeline construction in the early 1980s.
Alcoa was the initial cornerstone customer of the DBNGP and its involvement in what was then the State’s largest infrastructure project helped facilitate the development of the North West Shelf Gas project.
In 2004, Alcoa was part of a consortium that acquired the pipeline. Since 2005, the consortium has expanded and enhanced the asset which helped facilitate much of the State’s economic growth in recent years. Today the DBNGP includes a parallel pipeline that runs alongside more than 80 per cent of the original pipeline.
The sale is expected to close in early April.
Alcoa of Australia is owned 60 per cent by Alcoa Inc. and 40 per cent by Alumina Limited.
Media contact: Jodie Read on 0404 800 335 or email@example.com