Reticulated gas to be installed in Kalgoorlie-Boulder

21/2/97

Residents of Kalgoorlie-Boulder will soon have the opportunity to use natural gas in their homes at a competitive price, Energy Minister Colin Barnett said today.

The Minister said that AlintaGas had been chosen as the preferred proponent to install reticulated gas in Kalgoorlie-Boulder, bringing to residents of the Goldfields city similar energy options as people living in major coastal regional centres, such as Albany, Bunbury and Geraldton.

Last year, four companies - Australian Gas and Light Company (AGL), Boral Energy, Wesfarmers Kleenheat and AlintaGas - were invited to submit formal bids for the reticulation of the Goldfields city.

Mr Barnett said that the bids were reviewed by an evaluation panel, chaired by the Office of Energy, and a recommendation made that AlintaGas be the preferred proponent.

He said that all four bids were of a high standard.

"The process of bidding and evaluation placed AlintaGas on even terms against the other bidders," the Minister said.

"AlintaGas was successful against experienced competitors and the tariffs and charges that result will be competitive and allow choice for consumers between gas, electricity and bottled LPG.

"As the cost of transporting gas to the Goldfields is higher than getting it to the South-West, the price of gas for householders in Kalgoorlie-Boulder will be about six per cent per gigajoule more. However, it will be about one third cheaper than the current price of bottled LPG.

"This will bring many customers, who choose to use natural gas, significant cost saving benefits.

"For commercial customers, the price of gas will be about four per cent higher than in the South-West."

Mr Barnett said that an evaluation panel scrutinised all four tenders and found that AlintaGas offered key benefits in a number of important areas.

"Work is expected to begin within six months with customers progressively connected soon after," he said.

AlintaGas has stated that it would undertake to have gas available to 95 per cent of Kalgoorlie-Boulder, or approximately 9,300 customers, after two years.

"AlintaGas also plans to begin a promotion program and an incentive package to help customers convert to natural gas delivered through the Goldfields gas pipeline," Mr Barnett said.

He also said that AlintaGas' reticulation of Kalgoorlie-Boulder would be licensed separately outside of its powers under the Gas Corporations Act 1994.

AlintaGas had been treated on the same commercial basis as other proponents during the tender and award process and it was appropriate that it would continue the implementation phase under the same guidelines.

Mr Barnett said that when the Government deregulated the energy industry, it promised the move would benefit Western Australians overall.

"One of the first to take advantage of energy deregulation was Goldfields Gas Transmission, which built the gas pipeline from the North West Shelf," the Minister said.

"That move was of great benefit in lowering energy prices to mining and large industry on the Goldfields.

"Now, the direct benefits and real savings that gas to the Goldfields has brought to industry will also be reaped by householders and smaller commercial customers."

Media contact: Justine Whittome (09) 222 9699