Have a look at CNN money for prices, is is not far off our close...

Have a look at CNN money for prices, is is not far off our close yesterday, it was also up in after hour trading

SYDNEY -(Dow Jones)- Verve Energy's Kwinana power station is back in production after three months' maintenance, helping to offset the impact from the power shortage in Western Australia state following a major gas explosion in early June, the Western Australian government said Tuesday.

The 110 megawatt plant will operate at 60% capacity for the first couple of days before returning to full capacity.

"Bringing this coal-fired power station back on line will reduce the amount of expensive diesel used and free up gas for companies that need it," Western Australia Premier Alan Carpenter said.

The explosion at Apache Corp.'s (APA) gas processing plant on Varanus Island cut gas supplies by 30%, hitting commercial customers hardest.

The blast interrupted supply to key miners and refiners such as BHP Billiton Ltd. (BHP.AU), Rio Tinto Ltd. (RIO.AU), Alcoa Inc. (AA) and Newcrest Mining Ltd. (NCM.AU), forcing them to reduce output or shut down temporarily while securing costly additional gas supplies and diesel.

About 60% of daily capacity at Varanus island of 350 terajoules is expected back up and running by Aug. 15 and the remainder in December, according to Apache.

Other power stations returning from regular maintenance include the 240 megawatt Cockburn Power Station.

Two units of the Muja Power Station, idled last year, are still being assessed, and will mostly likely be returned to service in mid-August with 180 megawatt coal-fired capacity, the statement said.

The Pinjar gas turbine station, with 110 megawatt capacity, will be out of service for up to five weeks after damage to a major machinery component.

-By Elisabeth Behrmann, Dow Jones Newswires;

61-2-8235-2965; [email protected]

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(END) Dow Jones Newswires
07-07-08 2212ET
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