The Wheatstone Ashburton West pipeline project includes revamping DDG’s existing pipeline from Ashburton West to compressor station 2 on DBNGP; building a new loop alongside the existing 10in pipeline; building a new line to link Ashburton West to Wheatstone’s domestic gas plant.
It also includes an initial 30-year, 100% take-or-pay gas transportation contract between DDG and Chevron.
The project, which will cost $94.9m, is expected to be completed by December 2014.
In addition, DUET will raise around $100m through a fully underwritten placement to fund the project.
DUET CEO David Bartholomew said, "The Project validates our strategic plan for DBP Development Group and positions it to become a significant new operating business for DUET."
"Importantly, the long-term take-or-pay contract with a strong counterparty supports DUET’s strategy of delivering stable and predictable returns to its stapled securityholders," Bartholomew added.
