Gas pipeline leader eyes Tasmania electricity link


"Gas pipeline leader eyes Tasmania electricity link
Nigel Wilson, Energy writer December 21, 2006
AUSTRALIA'S biggest gas pipeline operator, Australian Pipeline Trust, is ready to consider acquiring the Basslink electricity transmission system.
APT managing director and CEO Mick McCormack confirmed the interest in the marine cable linking Tasmania and Victoria after telling the stock exchange that APT had paid $170 million for the DirectLink electricity transmission interconnector between northern NSW and southeast Queensland.
'If BassLink comes up for sale, we would certainly be interested in looking at it as part of our approach to acquiring strategic assets,' Mr McCormack said.
Last month Basslink's owner, the British group National Grid, announced it was selling Basslink, the $780 million development that enables the export of up to 600MW of hydro-electricity into the National Electricity Market and the import of up to 480MW of coal-generated electricity into Tasmania to help meet its demands. Basslink, which was officially opened in May, is the world's longest subsea electricity interconnector and has been criticised for far exceeding original cost estimates.
Mr McCormack said APT had yet to be approached by National Grid but he said the asset could be a natural fit for the company.
Earlier this year APT bought the Murraylink interconnector from Red Cliffs in Victoria to Berri in South Australia for $153 million.
Interconnectors allow electricity to be swapped between market regions and are becoming increasingly important in the performance of the national electricity grid linking all states except Western Australia and the Northern Territory.
DirectLink is the smaller of the two interconnectors linkin"