Alinta accused of pipeline conflict

ALINTA'S crucial relationship with the competition watchdog has taken a turn for the worse.
The Australian Competition and Consumer Commission has launched legal action alleging the gas utility was involved in price-setting over the shipping of natural gas on the Dampier to Bunbury pipeline.
The ACCC has taken Alinta to the Federal Court, arguing an unnamed Alinta executive was seconded to DBNGP Holdings - the trustee of the trust that owns the pipeline that ferries gas from the North West Shelf to industry in the southwest of Western Australia - and this may have disadvantaged other gas users.
The conflict of interest arises because Alinta is one of the biggest customers of DBNGP and also a key stakeholder.
Alinta was part of a consortium that successfully bid for the pipeline from Epic Energy, which fell foul of bankers after it couldn't meet debt obligations after paying the West Australian Government $2.4 billion.
DUET owns 60 per cent of the pipeline, while Alinta and Alcoa, the biggest user, own 20 per cent each.
They paid $1.8 billion for the link in 2004. The ACCC got an undertaking from Alinta to stay away from negotiations with other end-users because Alinta holds vital information on shipping tariffs and capacity. The ACCC wants Alinta to terminate the executive's employment with the DBNGP and pay a fine for the alleged breach, and possibly payments to other gas users who may have been charged a higher tariff.
Alinta responded that it was taking the court action seriously.
In a statement to the Australian Stock Exchange it said: "Alinta is convinced that it has not obtained a commercial gain and that there has not been any anti-competitive effect as a result of the matters subject to the allegations.
"Alinta wishes to point out that its 2004 undertakings to the ACCC allow staff of Alinta Asset Management to be involved in commercial negotiations between DBNGP Holdings and shippers on the DBNGP. As legal proceedings have now been commenced, it is not appropriate for Alinta to make any further comment at this time."
The court action opens a second major legal front for Alinta in the Federal Court. Earlier the Australian Pipeline Trust instituted proceedings against Alinta after the utility took a 10.25 per cent stake in a lightning raid on APT's share registry.
Alinta has made no secret of its ambitions to take control of the company and wants to do so without having to launch an official takeover. Alinta Infrastructure Holdings, of which Alinta is a 20 per cent stakeholder, will book a 30 per cent stake in the company by asset swap with Australian Gas Light if shareholders of both agree.
APT argues the share raid was illegal and the Takeovers Panel has asked it to transfer the 10.25 per cent stake to the ACCC for sale. Alinta is seeking a review of the order and the Takeovers Panel is yet to make a decision.