Deal helps $200m gas pipeline

A $200 million project to build a gas pipeline from Victoria to South Australia took a big step forward yesterday with one of its backers, power generator Australian National Power, signing a gas supply deal.

ANP said its agreement with BHP Petroleum would give it 270 petajoules of gas over 10 years, sourced from BHPP's Minerva gas field in the Otway Basin. It is believed that most of the supply will be taken up by a planned 300-megawatt expansion of ANP's 500MW gas-fired Pelican Point power station in Adelaide.
ANP spokesman Jim Kouts said the supply agreement was enough for ANP's future needs in SA and it would be up to its fellow "foundation shippers" in the pipeline project - Origin Energy and the Pima Mining-owned magnesium smelter developer SAMAG - to source their own gas.

ANP and Origin Energy have formed South East Australia Gas to build the 650-kilometre underground pipeline from Port Campbell in Victoria to Adelaide

theage.com.au