PERTH (miningweekly.com) – Energy infrastructure provider APA on Wednesday announced a A$460-million investment to construct a 580-km pipeline in Western Australia to connect the emerging gasfields in the Perth basin to the Goldfields region, to form an interconnected gas grid.

“Having developed an interconnected gas grid on the East Coast that flexibly and seamlessly moves gas throughout eastern Australia, we are thrilled to now be creating one for Western Australia,” said APA CEO and MD Rob Wheals.

“By connecting existing pipelines, our investment decision to build the Northern Goldfields Interconnect (NGI) will not only add capacity to the system but will also increase gas supply options for customers. This will open up new regions for development supporting thousands of jobs both during and post construction.”

The NGI is expected to be operational around mid-2022, and will connect to APA’s Goldfields gas pipeline (GGS), which, in turn, connects to its Easter Goldfields network to create an interconnected gas pipeline system covering some 2 690 km.

“Our investment in the NGI will help stimulate significant economic development in Western Australia, and has the potential to unlock hundreds of millions of dollars of investment in the Goldfields region, which is rich in gold, potash and battery minerals such as vanadium, nickel and rare earths.

“Importantly, this A$460-million investment creates a platform for further growth by AP as more and more resource customers seek energy solutions, including renewables and battery storage underpinned by natural gas,” said Wheals.

He added that investment in the NGI would deliver double the additional capacity, or some 80 TJ/d to the Goldfields region, compared with spending the same amount to expand the existing GGP.

The GGP is currently fully contracted at around 202 TJ/d.

“With the depth and projects expected to be delivered in the region, we expect that the NGI will have a strong portfolio of long-term contracts in place by the time construction is completed in mid-2022. This is a market we know well and have been operating in for a long time,” said Wheals.

Fellow listed Strike Energy has welcomed the development of the NGI, pointing out that its own onshore gas assets would be the closest source of supply to the Goldfields region.

“APA’s pipeline announcement is a significant endorsement in the potential of the Perth basin to be a long-term, competitive source of energy for the Goldfields. Gas is the fuel of choice to replace diesel-fired electricity in the Goldfields. It is reliable and affordable, has significantly lower emissions, and facilitates high penetration of complementary renewable energy,” said Strike MD Stuart Nicholls.