DDG and joint venture partner TEC Pilbara have announced the practical completion of the Fortescue River Gas Pipeline (FRGP).
The 270km pipeline runs from Compressor Station 1 on the Dampier to Bunbury Natural Gas Pipeline before reaching the 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% 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 $183 million. 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, 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.”
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.