The pipeline designed to provide Fortescue a new energy source for its Solomon Hub has been completed, behind schedule.
The 270 kilometre long Fortescue River Gas pipeline was constructed by Monadelphous to deliver gas from the existing Dampier to Bunbury Natural Gas Pipeline to Fortescue Metals Group’s 125MW Solomon Hub power station.
The development of the pipeline is part of the miner’s wider strategy to cut energy costs and reduce carbon emissions across its operations.
As part of this pipeline development FMG is also converting power station from diesel to gas, which is predicted to save the miner around US$20 million annually.
A 20 year, 100 per cent take-or-pay gas transportation contract has been signed between the joint venture DBP Group (a joint venture between the DUET Group and TransAlta subsidiary TEC Pilbara) and the miner, with Fortescue already securing Shipper Rights under the Gas Transportation Agreement.
The pipeline has been completed this week, albeit 10 weeks behind schedule, according to The West.
DBP chief Stuart Johnston labelled the pipeline as one of the region’s most important pieces of energy infrastructure.