TransAlta Completes Gas Pipeline in Western Australia

TransAlta Corporation and partner DBP Development Group (DDG) have completed the Fortescue River Gas Pipeline in Western Australia.

The pipeline took nine months to be ready and cost A$183 million, TransAlta said in a statement Thursday.

The pipeline will deliver gas to TransAlta’s Solomon power station which services Fortescue Metals Group’s mining operations at the Solomon Hub. The power station will now operate on natural gas improving reliability and efficiency, the company said.

“The Fortescue River Gas Pipeline is the longest gas pipeline built in Western Australia in the past ten years and we are excited about future growth possibilities. The completion of the pipeline provides an opportunity for future expansion in the Pilbara region and is consistent with TransAlta’s strategy of growing in its core regions and diversifying its cash flows,” said Dawn Farrell, President and CEO of TransAlta.

TransAlta formed the Fortescue River Gas Pipeline Joint Venture with DDG in January 2014 to build, own, and operate the 270-kilometre, 16-inch natural gas pipeline from the Dampier to Bunbury Natural Gas Pipeline to TransAlta’s 125 MW dual-fuel power station at Fortescue’s Solomon Hub. Usage of the pipeline is contracted to Fortescue to supply gas for the Solomon gas-fired facilities under a 20-year agreement. TransAlta holds a 43 per cent interest in the joint venture.