11 Jun 2008
11 June 2008
Further to the market release of 5 June 2008 advising of the impact of the recent explosion at Apache Energy's Varanus Island gas processing plant, Energy Developments Limited advises that alternative gas supply and pipeline transport has now been secured on a short term basis to enable production of Liqufied Natural Gas (LNG) to resume at the West Kimberley Power Project's Karratha LNG plant.
This fully interruptible arrangement involves access to lower gas quantities at a higher current market price than Energy Developments' usual gas supply and pipeline transport arrangements, reflecting the limited supply of gas and gas transport available in Western Australia.
The financial impact of the alternative gas supply arrangements is being examined and Energy Developments' insurers are being kept informed of the situation.
Assuming continued gas supply and transport, the Karratha LNG plant is expected to maintain LNG production to a level sufficient to meet the electricity demand for WKPP West Kimberley towns without the necessity to invoke alternative generation arrangements.
Energy Developments continues to monitor gas availability, LNG production and electricity demand in consultation with key stakeholders.
The current Broome 60 day reliable operation test remains on foot and is due for completion later today. The test will be unaffected by the above events.
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