New gas pipeline to FMG’s Solomon mines officially opened

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Image credit: www.fmgl.com.au

Mining giant Fortescue Metals Group (FMG) has celebrated the completion of the 270 kilometre gas pipeline supplying gas to its Solomon mining hub.

Image credit: www.fmgl.com.au
Image credit: www.fmgl.com.au

The Fortescue River Gas Pipeline (FRGP), which connects Solomon operations near Tom Price to the Dampier to Bunbury Natural Gas Pipeline, is the longest pipeline to be constructed in the State for more than a decade.

The 16 inch diameter, 270 kilometre buried 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 said the FRGP would allow the company to achieve annual savings of over $20 million by converting the power station at its Solomon hub from diesel to gas.

Adertisement

“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,” Mr Pierce said.

WA Premier and State Development Minister Colin Barnet, who joined Mr Pearce, DBP Chief Executive Officer Stuart Johnston and TransAlta Managing Director Aron Willis at an event to mark the formal opening of the pipeline, congratulated all parties involved in the project, saying it would greatly contribute to providing new energy supply options in the Pilbara.

“With an ultimate capacity of 300 terajoules per day, the pipeline also represents a significant addition to gas supply in the Pilbara, and opens up new opportunities for energy suppliers and consumers,” the Premier said.

“I congratulate all the companies and government agencies involved for the quick delivery of this project, which only commenced construction last year.”

The commissioning of the FRGP will see Fortescue cut its overall diesel consumption by around 80 million litres a year, reducing the company’s carbon emissions by around 60,000 tonnes.