Western Energy Pty Ltd, a wholly owned subsidiary of Perth Energy Pty Ltd,
today executed the first stage of financial closure for its 120 MW Kwinana
Power Station Project.
The project is expected to have a total cost of A$120m with non recourse
project finance covering nearly two thirds of the total cost. While a number
of minor conditions remain to be satisfied, all funding arrangements are now
committed.
Perth Energy is 76% owned by Infratil Ltd (NZX:IFT), a New Zealand
infrastructure and utilities investment company. Infratil has entered into
an equity subscription and underwriting agreement with Perth Energy for the
project.
The turnkey EPC contract has been awarded to Perth based Capital
Turbines Australia Pty Ltd.
The 120MW Power Station will consist of two Pratt and Whitney FT8 Gas
Turbines, in an open cycle arrangement, connecting directly to the Dampier to
Bunbury Natural Gas Pipeline. The plant will have the capability of
operating on liquid fuels so mitigating any risk of gas supply disruptions.
Being fast response, the plant will be particularly valuable in supporting
the grid including managing variable output renewable projects.
The project has IMO certification for capacity credits, commencing October
2010. Capacity credits are a feature of the Western Australia market
designed to ensure adequacy of capacity
on the system. The capacity credit mechanism provides good base
support for the project''s revenues.
Ky Cao, Perth Energy Chief Executive, is especially pleased with
reaching this position after identifying the opportunity some 6 years ago,
stating "Perth Energy is particularly grateful to the many stakeholders,
including government and non-government agencies and authorities, without
whose efforts the project would not have progressed to its current status."
Darryl Flukes, Chairman of Perth Energy and Infratil Energy Australia''s Chief
Executive added that "development of this asset is instrumental in supporting
Perth Energy''s retail growth strategy in both electricity and gas and
becoming the third energy supplier within the South West Interconnected
System (SWIS)."
End CA:00168697 For:IFT Type:GENERAL Time:2008-08-15:17:04:55