APA to expand gas footprint in WA Goldfields with contract renewal

Australian energy infrastructure provider APA Group is extending its pipeline services to an existing mining customer in the Goldfields region of Western Australia.

The contract is expected to generate around $45 million in revenue over a five-year contract period (including $21 million from contract extensions) and will use APA’s West Coast Grid to deliver gas over a distance of 1200km.

The contract is one of three in place to expand the Murrin Murrin Lateral (MML), an 85km lateral pipeline that delivers gas to Minara’s Murrin Murrin nickel-cobalt mine roughly 70 kilometres to the east of Leonora.

The MML is part of the larger Eastern Goldfields Pipeline System (EGPS), which is comprised of the MML and Eastern Goldfields Pipeline (EGP).

In addition to Murrin Murrin, the EGPS features several transmission pipelines that help to service some notable gold mines in the region, such as AngloGold Ashanti’s Sunrise Dam and Tropicana mines, Laverton’s Mt Morgan mine and Goldfield’s Granny Smith mine, among others.

The EGPS is in turn connected to APA’s primary Goldfields Gas Pipeline (GGP), which runs 1378km from Yarraloola in the northern Pilbara to Kalgoorlie in the Goldfields, servicing a large area of Western Australia.

According to APA managing director Mick McCormack, the company has invested “significant amounts of capital” to build its Western Australian mining presence.

“Continuing to invest in our asset footprint to enable more certainty and growth opportunities for our customers is very satisfying as an infrastructure owner and operator,” McCormack said.

“We continue to look at ways of adding value to the services we provide to our customers to help them optimise their energy needs.”

APA manages a portfolio worth over $20 billion that includes several mining contracts and delivers around half of Australia’s gas usage.

The company’s recent projects include the development of a 100MW solar farm near Darling Downs in Queensland; a 460km pipeline connecting Santos’ Narrabri gas project to New South Wales’ gas transmission network; and a 60km buried pipeline in Victoria running from Crib Point to Pakenham.