The Australian Pipeline Trust today said the construction of the Trans Territory Pipeline would be delayed following the termination of negotiations between Alcan and the Blacktip Joint Venture.

Alcan has announced that the gas sale agreement with the Blacktip Joint Venture for the future supply of gas to Alcan’s plant at Gove has been terminated as a consequence of the Blacktip Joint Venture’s request for a substantial price increase.

In March 2005, the consortium of Australian Pipeline Trust (APA) and ANZ Infrastructure Services (ANZIS) was named as preferred bidder to build, own and operate the 940km Trans Territory Pipeline, subject to final approvals from the Alcan board.

APA CEO, Mick McCormack, said the termination of the agreement meant that the pipeline would be delayed and would be unlikely to proceed in line with the current schedule to provide first gas at the end of 2007.

Mr McCormack said it was a disappointing development.  “Major gas developments such as this take considerable time to bring to fruition, and setbacks are not uncommon,” he said.

“APA believes that the underlying project fundamentals are sound and that a gas supply solution will be found.”

APA will continue to work with Alcan, with the Northern Territory Government and other
stakeholders, to provide a long-term gas solution for the Northern Territory.