Fortescue Metals Group today celebrated the formal completion and official commissioning of a 270 kilometre pipeline supplying gas to its Solomon Hub mining operations, an important milestone in Fortescue’s bid to drive sustainable cost reductions throughout its business.
The Fortescue River Gas Pipeline (FRGP), which connects the Solomon Hub near Tom Price to the Dampier to Bunbury Natural Gas Pipeline, was built and is owned and operated by DBP Development Group, a subsidiary of DUET Group, and TEC Pilbara, a subsidiary of TransAlta.
Fortescue Chief Financial Officer Stephen Pearce today joined WA Premier Colin Barnett, DBP Chief Executive Officer Stuart Johnston and TransAlta Managing Director Aron Willis at an event in the Perth CBD to mark the formal opening of the pipeline.
Mr Pearce said the completion of the FRGP would deliver over $20 million in annual savings to Fortescue with the Company’s Solomon Hub and Port operations now powered entirely by natural gas.
“The development of FRGP is a great example of how Fortescue is driving operational efficiencies and long-term sustainable cost reductions to ensure the business remains competitive in any iron ore price scenario.”
As a result of the commissioning of the FRGP, Fortescue’s overall diesel consumption is expected to reduce by around 80 million litres a year, reducing carbon emissions by around 60,000 tonnes. Gas consumption is expected to average up to 10 terajoules a day.
Mr Pearce thanked DBP, TransAlta and their employees and contractors for the safe and successful delivery of the pipeline.