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Fortescue River Gas Pipeline more than halfway through construction

Fortescue Metals Group Director of Development Peter Meurs recently commented that the pipeline is “progressing with line pipe delivered and stringing underway at multiple sites”.

As for the pipeline’s final dimensions, Mr Meurs said the pipeline has been oversized so it can provide not only gas to the Solomon Power Station but ultimately to all of Fortescue’s power stations and potentially to its mining fleet.

DDG formed a joint venture with TransAlta’s wholly-owned subsidiary TEC Pilbara to build, own and operate the pipeline, with DDG holding a 57 per cent interest in the joint venture and TransAlta holds 43 per cent.

Meanwhile, an initial 20-year, 100 per cent take-or-pay gas transportation contract has been executed between the joint venture and FMG Pilbara, a wholly-owned subsidiary of Fortescue, as the foundation shipper on the Fortescue River Gas Pipeline.

The project is expected to be completed in the first quarter of the 2014-15 financial year at a total cost of $A182 million.

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