APA Group proposes to build the Northern Goldfields Interconnect Pipeline (NGI pipeline), a new 580km long 12” gas pipeline in Western Australia, with an investment of up to AUD460 million ($341.55m).

According to the Australian energy infrastructure firm, the new pipeline is planned to connect emerging gas fields in the Perth Basin with the Goldfields region.

Expected to begin operations around mid-2022, the NGI pipeline will form an interconnected WA Gas Grid.

NGI pipeline to be connected to Goldfields Gas Pipeline

The new gas pipeline will be connected to APA Group’s Goldfields Gas Pipeline (GGP), which in turn, links to the company’s Eastern Goldfields Pipeline System (EGPS pipeline system). As a result, APA Group will create an interconnected APA gas pipeline system spanning 2,690kms.

Commenting on the NGI pipeline, Rob Wheals – CEO and Managing Director of APA Group said: “Having developed an interconnected gas grid on the East Coast that flexibly and seamlessly moves gas throughout eastern Australia, we are thrilled to now be creating one for Western Australia.

“By connecting existing pipelines, our investment decision to build the NGI will not only add capacity to the system but will also increase gas supply options for customers. This will open up new regions for development supporting thousands of jobs both during and post-construction.

“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.”

Rob Wheals added that the new Northern Goldfields Interconnect Pipeline will provide APA Group a platform for further growth as more and more resources customers are looking for energy solutions, which include renewables and battery storage that are supported by natural gas.

According to the APA Group CEO, the NGI pipeline will provide double the additional capacity, at nearly 80 terajoules per day (TJ/day), to the Goldfields region, when compared to investing the same amount to expand the existing Goldfields Gas Pipeline.

Furthermore, the new interconnect pipeline will provide cost-effective capacity for customers besides giving scope for future expansion to increase capacity as needed, said Rob Wheals.

For meeting the investment needed for the NGI pipeline, APA Group will be selling 50% of its stake in the Mid West Pipeline by working with its joint venture partner – Horizon Power.

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