APA Group will construct a new gas transmission pipeline and gas-fired power station to fuel the Gruyere Gold Project in Western Australia.
APA will design, build, own and operate the 198 km pipeline (to be known as the Yamarna Gas Pipeline) and a 45 MW gas-fired power station, at a total construction cost of around $180 million.
The Gruyere Gold Project is a 50:50 Joint Venture between Gold Road Resources and Gold Fields (Gruyere JV), and is located in the Yamarna greenstone belt of Western Australia, 200 km north east of Laverton and to the north of APA’s Eastern Goldfields Pipeline.
“I’m very pleased to announce this organic growth project – it ticks all the APA boxes in terms of demonstrating our capability in energy solutions and construction; leveraging APA’s interconnected energy infrastructure; and long-term contracts with highly creditworthy counterparties,” said APA’s Managing Director Mick McCormack.
“We built and commissioned the Eastern Goldfields Pipeline 18 months ago, and the Gruyere JV will be the third customer to take advantage of our interconnected pipelines in this region to provide a safe and reliable energy solution – as an infrastructure owner, you want to see your assets worked hard.”
A 15 year transportation agreement has been entered into to support a 15 year Electricity Supply Agreement with the Gruyere JV to deliver the necessary energy for the project.
Gas will be transported almost 1,500 km to the site using four of APA’s interconnected gas pipelines: Goldfields Gas Pipeline, Murrin Murrin Lateral, Eastern Goldfields Pipeline and the Yamarna Gas Pipeline.
Commissioning of both pipeline and power station is expected to be late 2018, to align with the Gruyere JV’s expectation of first gold scheduled for early 2019.