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Wesfarmers finds pipeline bidding too hot

Wesfarmers has joined Alinta as the second company to pull out of the highly competitive bidding war for the Epic Energy's prized asset, the Dampier to Bunbury Natural Gas Pipeline (DBNGP).

Wesfarmers finds pipeline bidding too hot

Unlike Alinta though, who had claimed limited access to due diligence data had ruined its chances, Wesfarmers said the competition had simply pushed the price beyond its limits.

Unveiling yet another record profit yesterday - a $601 million first half underpinned by the sale of the Landmark rural services business - chief executive Michael Chaney said although Alinta has also quit the race, bids from Singapore Power, Canada's Enbridge Inc and Australian Pipeline Trust could push the price as high as $2 billion.

The pullout is Wesfarmers' second unsuccessful attempt at purchasing the pipeline after being outbid by Epic during the initial privatisation phase in 1998. The company has not ruled out all involvement maintaining it is open to join the bid of another consortium.

However, the company hasn't given up all of its energy aspirations, instead has moved its attention to Duke Energy's $1.5 billion suite of Australian pipelines.

Chaney said Wesfarmers was interested in Duke Energy's Australian assets, which include 12% of the Goldfields gas pipeline, the Port Hedland power station and major gas pipelines in NSW, Bass Strait and Queensland.

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