State gas refits to cost BHP $35m

Monday, Mar 07, 2011
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THE West Australian government is embarking on an extraordinary shopping spree, funded by BHP Billiton, to buy new stoves, hot-water systems and other appliances for families.


More than 21,000 appliances have already been identified as needing replacement or a refit as the government implements new gas specifications for companies supplying the domestic market.


Commerce Minister Simon O'Brien said the action was necessary because some pre-1980s appliances were incompatible with the new gas mix and could be unsafe. He said the total cost of the program could exceed $35 million.


"However, it is the gas producers supplying lower energy content gas that are to pay the cost -- not WA taxpayers."


BHP, as a major beneficiary of the new specifications, has agreed to cover the cost to ensure its US$1.5 billion ($1.47bn) Macedon gasfield, being developed off the Pilbara coast, can supply the domestic market when production starts in 2013.


EnergySafety executive director Ken Bowron said 10,000 of the 21,000 appliances identified would need to be replaced, and others needed upgrades.


The state's vulnerability was highlighted by the Varanus Island gas explosion in 2008 that cut gas supplies for months, crippling business and costing billions of dollars.


Mr Bowron said pre-1980s gas appliances could emit dangerous levels of carbon monoxide or create potentially explosive flame-outs when the gas specifications changed.


The contract to fit and supply the new appliances has gone to tender and is due to be finalised next month.(The Australian)

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