APA secures $585m contract for Gruyere Project pipeline and power station
The Gold Road-Gold Fields / Gruyere joint venture has appointed APA Group to build a new gas transmission pipeline and gas-fired station which will supply power to the Gruyere Gold Project, as part of a 15-year $585 million contract.
APA Group will design, construct, own and operate the 198-kilometre pipeline as well as the 45MW gas-fired power station. The new pipeline and power station will be called Yamarna Gas Pipeline and Yamarna Power Station respectively – located in the Yamarna greenstone belt of WA, 200 kilometres north-east of Laverton.
The company will also invest approximately $180 million in the project, which will be recovered over 15 years through a gas transportation and electricity supply agreement.
Source: APA Group
Gas will be transported to the Gruyere site almost 1,500 kilometres in distance from the power station by using four APA interconnected gas pipelines – Goldfields Gas Pipeline 1, Murrin Murrin Lateral, Eastern Goldfields Pipeline and the Yamarna Gas Pipeline.
Commissioning of the project is expected by late 2018 which aligns to the Gruyere joint venture’s plans to begin production by early 2019.
APA Group’s Chief Executive Officer and Managing Director Mick McCormack said that this agreement is a compelling solution for the joint venture.
“We built and commissioned the Eastern Goldfields Pipeline 18 months ago, and the Gruyere JV will be the third customer to take advantage of our interconnected pipelines in this region to provide a safe and reliable energy solution – as an infrastructure owner, you want to see your assets worked hard,” Mr McCormack said.
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Source: Australian Mining, Gold Road and APA Group
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