DBP Development Group have announced practical completion of the Fortescue River Gas Pipeline (FRGP) in WA.
The 270km FRGP is the longest gas pipeline built in Western Australia in over a decade and runs from Compressor Station 1 on the Dampier to Bunbury Natural Gas Pipeline to Fortescue Metals Group’s Solomon Hub mining operations, in the Pilbara.
Gas delivered through the FRGP will allow the 125MW TransAlta power station at Solomon Hub to convert from diesel generation to natural gas, making Fortescue’s operation more environmentally friendly and cost effective.
A Fortescue subsidiary, FMG Pilbara Pty Ltd, is the foundation shipper on the FRGP under a 20-year, 100 per cent take-or-pay gas transportation agreement.
Construction of the pipeline was completed within an aggressive nine month timeframe.
Practical Completion was achieved approximately ten weeks later than originally envisaged but met Fortescue’s requirements.
The project was completed with an excellent safety and environmental record, achieving over half a million hours worked with no lost time injuries.
Total forecast cost to complete the project is currently estimated at $183million.
DBP Chief Executive Officer, Stuart Johnston, said the pipeline represented one of the Pilbara’s most important pieces of energy infrastructure and would help fuel future development in the region.
“The FRGP will help meet the current energy needs of mining projects in Pilbara, as well as facilitating further development opportunities and facilitating both cost reduction and resource project export productivity,” Mr Johnston said.
“DBP has an outstanding reputation as a safe and reliable developer, owner and operator of critical energy pipeline infrastructure in Western Australia.
“We are proud to have continued these standards through construction of the FRGP.”
Mr Johnston also noted the project would not have been a success without the support of Fortescue, the Department of State Development, Department of Lands, Department of Mines and Petroleum, the Yindjibarndi, Kuruma Marthudunera and Wirlu-murra Yindjibarndi Aboriginal Corporations, pastoral leaseholders and the main contractors, Monadelphous KT Pty Ltd and Enerflex Process Pty Ltd.
Given the strategic importance of this pipeline in facilitating energy infrastructure development in Western Australia, arrangements for a formal commissioning ceremony are being developed and will be announced shortly.
The FRGP is the second natural gas pipeline to be successfully constructed and commissioned by DDG, with the 110km Wheatstone Ashburton West Pipeline project having been completed on time and within its budget cap in December 2014.