The 580 km, 12-inch (304 mm) pipeline will connect emerging gas fields in the Perth Basin to the Goldfields region, forming a Western Australian gas grid.
APA Group announced it will invest up to $460 million in the new Northern Goldfields Interconnect (NGI), which is expected to be operational mid-2022.
The NGI will connect to APA’s existing Goldfields Gas Pipeline (GGP), which in turn connects to APA’s Eastern Goldfields network, creating an interconnected APA gas pipeline system covering 2,690 km.
APA CEO and Managing Director Rob Wheals said after developing an interconnected gas grid on the east coast, APA is thrilled to be creating one for WA.
“By connecting existing pipelines, our investment decision to build the NGI will not only add capacity to the system but will also increase gas supply options for customers,” he said.
“This will open up new regions for development supporting thousands of jobs both during and post-construction.
“Importantly, this $460 million investment creates a platform for further growth for APA as more and more resources customers seek energy solutions, including renewables and battery storage underpinned by natural gas.
“As a leading Australian energy infrastructure business, we are pleased to be playing a central role in addressing our nation’s energy needs and challenges, while supporting Australia’s recovery from the economic impacts of COVID-19.”
Mr Wheals said APA is grateful for the support from the WA Government on the project.
“The NGI solution is the optimal, most innovative and cost-effective solution to meet the needs of this region and APA is proud to support the growth of our customers and the state.”
APGA CEO Steve Davies called the announcement “great news” for the Australian economy and the gas industry.
“It is a timely demonstration of the ongoing role natural gas plays as an essential source of energy in Australia,” he said.
“The fact that the market has delivered this solution to the Goldfields region is a clear sign of the merits of natural gas as source of energy.
“The project also provides a new market for petroleum explorers and producers in the Perth Basin in WA and we expect both supply and demand-side investment will be delivered because of this new infrastructure.”
For more information visit the APA Group website.
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