ALCOA of Australia has sold its 20 per cent stake in the Dampier-Bunbury natural gas pipeline (DBNGP) to DUET Group for $205 million, giving DUET total ownership of the pipeline’s holding company, DBP.

DUET Group completed the placement of 90.9 million shares at $2.20 each to raise $205 million to help fund the acquisition, with institutional investors supporting the offer.

Alcoa of Australia will retain its current access to about 30% of DBNGP transmission capacity for the supply of gas to its three alumina refineries in Western Australia.

In an announcement, Alcoa of Australia chairman and managing director Michael Parker said Duet was committed to the ongoing success of the pipeline.

“Collectively we have established a secure and valuable asset which will serve Alcoa’s business and the State’s other natural gas consumers extremely well for many years to come,” he said.

Alcoa was part of a consortium that acquired the pipeline in 2004, with that consortium having expanded and enhanced the asset since 2005.

Today the DBNGP includes a parallel pipeline that runs alongside more than 80% of the original pipeline.

“Alcoa of Australia expects the net cash impact of the transaction, after estimated fees and taxes, will be approximately US$115 million,” it said in an announcement, with Alcoa expecting to gain between US$10 million and US$15 million in connection with the sale.