FMG has celebrated the formal completion and commissioning of a 270 kilometre pipeline which supplies gas to its Solomon Hub mining operations.
The Fortescue River Gas Pipeline (FRGP), which connects the Solomon Hub near Tom Price to the Dampier to Bunbury Natural Gas Pipeline, was built and is owned and operated by DBP Development Group, a subsidiary of DUET Group, and TEC Pilbara, a subsidiary of TransAlta.
Fortescue Chief Financial Officer Stephen Pearce joined WA Premier Colin Barnett, DBP Chief Executive Officer Stuart Johnston and TransAlta Managing Director Aron Willis at an event in Perth CBD yesterday to mark the formal opening of the pipeline.
Pearce said the completion of the FRGP would deliver over $20 million in annual savings to Fortescue with the Company’s Solomon Hub and Port operations now powered entirely by natural gas.
“The development of FRGP is a great example of how Fortescue is driving operational efficiencies and long-term sustainable cost reductions to ensure the business remains competitive in any iron ore price scenario,” Pearce said.
As a result of the commissioning of the FRGP, Fortescue’s overall diesel consumption is expected to reduce by around 80 million litres a year, reducing carbon emissions by around 60,000 tonnes.
Gas consumption is expected to average up to 10 terajoules a day.