FMG to build Pilbara gas pipeline

Fortescue Metals Group are planning on cutting operational costs in the Pilbara by building a gas pipeline to link its Solomon and Chichester iron ore mines.

FMG have undertaken early studies into the building the pipeline which would run from Port Hedland to its Solomon mine hub.

According to the West Australian, the project has been dubbed ‘Pilbara Gas Pipeline’, although the timeline and cost of the project remain unclear, as does the proposed route the pipe would take.

FMG are reportedly looking to power its yet-to-be constructed Nyidinghu mine from the pipe as it will host its own gas-fired power station, while the pipe will also supply the nearby Cloudbreak and Christmas Creek mines.

It is expected the project will require a utility or gas operator in order to finance the plan.

Last year FMG sold the power station at its Solomon mine to a subsidiary of TransAlta for $US300 million, fuelling speculation the Canadian utility could play a role in the gas plan.

Fortescue yesterday confirmed its plans to build the pipe but provided no further detail.

"Fortescue is pursuing options to run a gas pipeline to the company's Solomon mine and eventually other mine sites in the Pilbara," a spokeswoman said.

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