Construction on the 7MW gas-fired power station is on schedule to begin in September, with the acquisition of land for the compressor station and power facility the only remaining hurdle.

State utility Western Power said land for both buildings would be secured by mid-year.

Burns & Roe Worley, which clinched the contract back in September 2003, said it could begin ordering parts and materials by as soon as April.

The potentially crippling effect of steel shortages, which has delayed the construction of new power stations in Western Australia's Kimberley region by at least eight months, had been taken into account, business development manager Matt Duxbury said.

In December, Western Power said contractor Energy Developments had asked for an extension on the $600 million West Kimberley Power Project after experiencing steel supply and approval hindrances. The first of five new stations in the region is now expected to come online in late 2006.

The Exmouth power station, part of a series of regional power programs implemented by the Gallop Government, would help sustain a reliable service in Exmouth, which has increased energy consumption by 13% in the past 12 months.

The station was due to be operational by mid-2006.

Burns & Roe Worley is a joint venture between Worley and Burns & Roe Enterprises, specializing in project management, consulting services, procurement, design, construction, servicing, operation and maintenance of process plant and equipment.