A NATIONAL safety watchdog has concluded ineffective corrosion protection of a gas pipeline was to blame for an explosion that cut Western Australia’s petrol supply in June 2008.
The explosion at
Apache Corporation’s Varanus Island plant on 3 June 2008 caused fuel shortages right across the state and forced mining companies to temporarily cut production.
According to the
WA Chamber of Commerce and Industry, the explosion cost the WA economy upwards of $6.7bn, as businesses were unable to power vehicles or production.
The Safety Authority says if Apache is found to be at fault, insurance claims by mining companies such as Iluka Resources and Alcoa will severely cost the company.
Apache says there were no warning signs, and the failure was “surprising and certainly not foreseeable”.
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