Sale of Dampier-to-Bunbury natural gas pipeline officially completed

25/3/98

The biggest privatisation in Western Australian history, the $2,407 million sale of the Dampier-to-Bunbury Natural Gas Pipeline, has today been officially completed with the WA Government receiving the full amount from the sale from new owners Epic Energy Australia.

The State Government today accepted full and final payment from Epic Energy Australia, just three weeks after the Government announced the details of the successful sale.

Epic Energy Australia is an Australian-based company, owned by two US-based shareholders - El Paso Natural Gas Company and Consolidated Natural Gas Company - and four Australian-based shareholders - AMP Life Ltd, Axiom and Hastings (for the Utilities Trust of Australia and the Australian Infrastructure Fund).

A ceremony today involving WA Energy Minister Colin Barnett and Epic Energy chief executive officer Hugh James, marked the conclusion of the successful sale.

From today, Epic Energy Australia owns and operates the DBNGP. The more than 130 employees involved in its operation will also be employed by Epic Energy Australia.

"Since the 100 per cent privatisation was announced in May last year, it has been a very hectic time for everyone involved in selling this important energy asset," Mr Barnett said.

"Since the announcement of Epic Energy Australia as the successful bidder earlier this month, there has been a period of intense activity involving finalisation of documents, consultation with employees who will be transferring to the new buyer and the handing over of day-to-day operational matters.

"Just today, executing the necessary financial transactions has involved the Reserve Bank of Australia, lawyers and merchant bankers working from 7am to complete the sale in around four hours.

"This has been the most successful privatisation in the State's history. The Government now looks forward to the strong presence that Epic Energy will have in WA as it plans the future of the DBNGP operations and as it establishes Perth headquarters for its Australian operations."

Mr Barnett said the costs to the State of selling the 1530km DBNGP had been kept low.

"Up until the end of last week, the total estimated costs were approximately $10.5 million, or less than half a per cent of the total sale price. That figure will rise with further accounts still to be settled," he said.

The Minister will provide a full report, including costs, of the sale process to Parliament in approximately one month. The Auditor-General will also provide a report.