TransAlta to build natural gas pipeline in Western Australia

Canadian firm TransAlta, through its wholly owned subsidiary TEC Pilbara, has announced a joint venture (JV) to build, own and operate a $178m natural gas pipeline.

The company formed the unincorporated JV with DUET Group’s wholly-owned subsidiary DBP Development Group (DDG).

Under the Fortescue River gas pipeline JV, the pipeline will be built, owned, and operated from the Dampier to Bunbury Natural Gas Pipeline to TransAlta’s 125MW dual-fuel power station at Fortescue Metals Group’s Solomon Hub.

TransAlta president and chief executive officer Dawn Farrell said that the JV brings together the strengths of two companies with experience in Western Australia to provide lower costs as well as a key piece of energy infrastructure to Fortescue.

"The investment also provides an opportunity for future expansion in the Pilbara region and is consistent with TransAlta’s strategy of growing in its core regions and diversifying its cash flows," Farrell added.

Construction of the 270km 16in Fortescue River gas pipeline is expected to begin in July 2014, and the pipeline is scheduled to be operational in early 2015.

Claimed to be longest gas pipeline to be built in Western Australia over the past ten years, the pipeline will supply natural gas to the TransAlta power station upon completion.

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Image: The Fortescue River Gas Pipeline is expected to be operational in early 2015. Photo: courtesy of puttsk / FreeDigitalPhotos.net.