The state-owned utility needs to replace the generation capacity it will lose by closing down all its coal-fired power stations over the next four years.
The Dampier to Bunbury Natural Gas Pipeline owned by the Australian Gas Infrastructure Group, a subsidiary of Hong Kong-based CK Infrastructure Holdings, has transported gas from the Pilbara to the South West of WA since 1984.
WA's competition regulator has accepted that competition from renewable energy will shrink the economic life of the Dampier to Bunbury gas pipeline by more than three decades.
