Perth Basin gas connection opened

A $460 million gas pipeline built to link the Mid West to the Goldfields was officially opened by the state government and contractor APA Group today.

The 580-kilometre Northern Goldfields Interconnected (NGI) buried pipeline connecting the Dampier to Bunbury natural gas pipeline to the Goldfields gas pipeline was announced in 2020 and will help connect existing and new natural gas production regions with gas storage infrastructure.

That includes the Perth Basin, where significant exploration and development activity is currently underway.

The pipe connects to the Dampier to Bunbury line at Ambania near Geraldton and joins the Goldfields line in mining territory 40km south of Leinster.

It adds strength to APA’s presence in WA, where it has an interconnected gas pipeline system covering 2,690km across the Mid West.

APA chief executive Adam Watson said the opening was a significant moment for energy security in Western Australia.

“This infrastructure is the missing link in WA’s gas network,” he said.

“For years, an interconnected gas grid on the east coast has helped manage supply and demand challenges across key markets. With the completion of the NGI, linking WA’s two major north-south gas pipelines, APA will ensure greater flexibility and security to meet the state’s long-term energy needs.”

Mr Watson said the pipeline would be beneficial to the growth and development of WA’s resources industry.

“We are investing ahead of demand, supporting the government’s long-term growth plans in areas like critical minerals, and providing confidence to project owners that reliable energy is available to bring new projects to market,” he said.

“Gas continues to be critical to support Australia’s key industries with energy security.

“Paired with renewables, the availability of gas will also ensure our resources and other customers can operate and grow while delivering on their broader decarbonisation objectives.”

Energy minister Bill Johnston said the project would also facilitate economic diversification.

“Projects like this play a valuable role in helping to drive economic diversification, and this pipeline provides a platform for growth opportunities throughout the Mid West and Goldfields,” he said.

The pipeline was initially scheduled for completion in mid-2022.

Its opening will be a welcome milestone for developers in the Perth Basin, with Strike Energy endorsing the pipeline when it was announced towards the end of 2020.

The basin has, in more recent times, been an area of great interest among companies linked to some of the state’s highest profile businesspeople, as the state looks to sure up gas supply.