CCI Chief Executive Graham Harvey told Gas Today that “Albany doesn’t have the capacity to attract medium to heavy industry until such time as base load gas is available.”

Mr Harvey’s comments follow recent concerns about the costs and timeline of the pipeline revealed by the state’s Shadow Minister for Energy, Science and Information Kate Doust.

Ms Doust said documents obtained under Freedom of Information cast doubt on the Government’s plans.

“Correspondence to Energy Minister Peter Collier... indicates that the cost of the Liberal Party’s plan ‘might be far more than $A225 million, perhaps double’,” Ms Doust said.

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Ms Doust added that the documents also revealed that the preferred route for the pipeline along existing road reserves has been deemed unsafe.

“Changing the route of the gas pipeline will add significant land acquisition costs to the project,” Ms Doust said.

Western Australia Premier Colin Barnett rejected the opposition’s accusations, saying that the pipeline was part of the Government’s 2008 election commitment and will go ahead as planned.

The Government said construction is expected to begin following the completion of stakeholder negotiations, market assessment, design and finalisation of approvals.

The pipeline will take advantage of existing road reserves with the final route to be determined after negotiations with private landholders.

CCI has called for confirmation of a date for the pipeline’s construction from the State Government.

In May 2009 the Western Australian Government allocated $A20 million for the purchase of land necessary for the South West Gas Pipeline as part of its 2009 budget.

The proposed pipeline will run from Bunbury to Albany and will measure 200 mm in diameter. It is expected to carry around 50-100 TJ/d of gas, providing a lower cost alternative to bottled LPG used by many customers in the state’s southwest.