Pipeline damage: companies to sue for repairs and losses

ExxonMobil and BHP are suing Bernhard Schulte for the cost of repairing the pipeline. Two chemical companies are suing for ongoing losses.

An ExxonMobil spokeswoman confirmed yesterday the pipeline would not be repaired until mid-March. "We have followed the necessary legal procedures to allow us to reserve our rights to make a claim for losses arising from the incident," Gemma Allman, of ExxonMobil, said.

Cargo company APL charters the APL Sydney from the owners and is not liable for the incident.

Bernhard Schulte's Ravi Korivi said Strong Wise was "co-operating fully" with Australian and Victorian maritime and safety authorities.

Ms Allman would not say how much ExxonMobil had asked for, but sources close to the case said more than $100 million was being pursued.

The pipeline carries ethane from ExxonMobil's Long Island Point plant at Hastings in Western Port overland to Mordialloc and under Port Phillip to Altona for two customers, Huntsman Chemical Company and Quenos plastic manufacturers.

Huntsman managing director John Bentley said production plants had been shut and chemicals were being imported for customers.

He said Huntsman had sustained financial losses but would not provide a figure.

"It is substantial, and it is subject of legal actions which a variety of parties are pursuing," he said. "The primary involvement at this stage has been in relation to the ship."

Quenos was operating at 40 per cent capacity and was also seeking compensation. It has begun using LPG as an alternative to ethanol in plastic production.

The matter is due in the Federal Court on February 20, to determine which parties can sue, and again on May 18 to determine the ship's liability.