tas, I don't believe the pipeline is working at full capacity...

tas, I don't believe the pipeline is working at full capacity however in my opinion only, even if there was spare capacity it's probably best the company avoid using it as the structural integrity of the pipeline itself is questionable.

If central were to look at using the pipeline they would have to undertake a comprehensive risk analysis for its use given any significant failures may leave them open to some form of liability. On top of this I could also see maintenance and potential downtime as a serious issue. Even in the slim chance maintenance was carried out to an appropriate level, it may not have the desirable economic performance for Johnstone's flow rates.

That said, they can possibly waive responsibility for the condition of the infrastructure via some form of agreement with the current operators but if it were me....I’d just avoid getting into the situation to begin with! The pipeline itself is c.25 years old and although that’s not bad, I’d be interested to see the operators initial lifecycle and recent maintenance assessment. It's probably not far from being made redundant.

If anything, it’s highly likely they will truck the oil from Johnstone directly to Brewer or to a transfer point on the rail line pending their final distribution (Darwin or possibly strike a deal with Santos at Port Bonython). You would potentially look at around $10 per barrel for road/rail transportation, though keeping in mind freight charges via rail can be a little exorbitant so contingently say $12.50 bbl at least.