Official opening of Goldfields Gas Pipeline

16/7/96

Gas now flows on the Goldfields Gas Pipeline for the first time after Resource Development and Energy Minister Colin Barnett officially opened the line today.

Mr Barnett opened the northern-most section of the $450 million line, which stretches from Yaraloola, near Karratha, to Kalgoorlie.

Speaking at the historic opening, Mr Barnett said the 565 kilometre-long section of line would bring enormous changes to industry and people in the region.

"It will reduce dependency on diesel fuel and will result in even lower cost for industry and will further open up competition in its wake," he said.

The Minister said the concept of a natural gas pipeline linking major industry to the gasfields in the North-West had long been an objective of the Coalition. Within four years the Government had made it a reality.

"This pipeline has already encouraged further industry investment in the region, such as the commitment by Western Mining Corporation to spend $120 million building four 40MW gas turbines at its Mt Keith, Leinster smelter and Kambalda nickel operations," he said.

"The tangible benefits of this project have been evidenced by today's announcement of a gas-fired power station at Newman and the many other contracts that have been awarded to local industry, such as Australian Shaw Pipe Protection.

"It will also mean increased investment and employment through the expansion of existing and new mining operations at Newman. In the northern Goldfields it will fuel the Mt Keith expansion; and developments by Anaconda Nickel at Murrin Murrin and by Dominion Mining at Yakabindie."

Mr Barnett said deregulating the gas industry increased the scope for processing options in the Pilbara and Goldfields due to the flexibility of gas as a primary energy source.

"Environmentally there will be reduced greenhouse gas emissions associated with the use of natural gas for power generation, reduction in the use of road trains on country roads to transport liquid fuels and an extension to the State energy grid with the possibility of reticulation of gas to remote communities," he said.

The total pipeline will be 1,400 km in length and will involve more than 60,000 segments of pipe.

Work on the $450 million Goldfields Gas Pipeline started in August 1995. It will carry gas from the North West of Western Australia to the Eastern Pilbara and Northern and Central Goldfields.

The Goldfields Gas Transmission Joint Venture (GGTJV) comprises Wesminco Oil Pty Ltd (WMC 62.7 per cent), Normandy Pipelines Pty Ltd (GMK 25.5 per cent) and Pilbara Energy Pty Ltd (BHP Minerals 11.8 per cent).

Media contact: Anabel Gomez 222 9595