TransAlta, Australian firm partner up to build gas pipeline
Calgary-based utility will have a 43% stake in the Fortescue River Gas Pipeline joint-venture.
natural gas pipeline
CALGARY – Calgary-based utility TransAlta Corp. is forming a joint-venture with an Australian firm, whose first project will be a $178-million natural gas pipeline in western Australia to supply fuel to an iron ore hub.
TransAlta will have a 43% stake in the Fortescue River Gas Pipeline Joint Venture, with a subsidiary of DUET Group holding the rest.
The 270-kilometre line would connect another pipeline that runs parallel to Australia’s western coast to TransAlta’s 125-megawatt power station at Fortescue Metals Group’s Solomon Hub further inland.
The pipeline is contracted to Fortescue under a 20-year agreement.
Construction is set to begin in July, with the pipeline coming into service in early 2015.
TransAlta has been involved in the Western Australia market – home to many remote mining operations – for 15 years, with six facilities able to generate a total of 425 megawatts.
©The Canadian Press