Australia’s largest natural gas infrastructure business APA Group (ASX:APA) will develop a new pipeline in the goldfields region of Western Australia for about $140 million.
The gas transmission pipeline will supply mining operations in the region for companies including AngloGold Ashanti Limited
(ASX:AGG) and Independence Group NL
(ASX:IGO).
APA has entered into new long term gas transportations agreements with the two companies which will underpin the construction of the 292 kilometre pipeline.
Engineering, design and procurement work has already started and slated for completion before January 2016 when the gas transportations services are due to start.
APA Managing Director Mick McCormack says the new pipeline will extend the company’s portfolio to service mines in the region and assist its customers in reducing costs.
AngloGold Ashanti and Independence Group expect gas power generation to reduce cash operating costs at both sites by between $25 to $30 per ounce of gold.
APA Group reported a net profit of $121 million in the first half of the 2014 financial year.
