“Our investment in the NGI will help stimulate significant economic development in Western Australia and has the potential to unlock hundreds of millions of dollars of investment in the Goldfields region, which is rich in gold, potash and battery minerals such as vanadium, nickel and rare earths.”
Mr Wheals said the NGI was a more cost effective way of boosting capacity to the Goldfields compared to expanding its existing and fully contracted 220 terajoules a day Goldfields Gas Pipeline from the Pilbara.
“With the depth and mix of projects expected to be delivered in this region, we expect that the NGI will have a strong portfolio of long term contracts in place by the time construction is complete in mid-2022,” he said.
“This is a market we know well and have been operating in for a long time.”
As part of the NGI project, APA will also divest its 50 per cent share of the Mid West Pipeline, which it shares with state-run power provider Horizon Power.
The Australian Petroleum Production and Exploration Association WA director Claire Wilkinson said the pipeline would help open up new markets for gas developments in the Perth basin.
“WA is blessed with significant natural gas resources, and responsible development of these resources will provide lower emissions energy to the local economy and continue to form part of WA’s energy mix,” she said.
“In this case, once the pipeline commences operations it will in particular deliver reliable gas‑fired power to miners in the Goldfields wanting to complement their renewable energy sources such as wind and solar.”