New gas pipeline the ‘missing link’ in critical mineral processing

afr.com:

A new gas pipeline linking the burgeoning Perth Basin to the Goldfields region will provide the “missing link” in energy supply to unlock the decarbonisation and downstream processing capacity of Western Australia’s critical minerals industry, APA boss Adam Watson says.

The 580 kilometre buried pipeline was officially opened on Friday, effectively creating a 2,700 kilometre interconnected network and bolstering gas supply to WA’s goldfields, where the company expects demand to ramp up in coming years.

APA’s Northern Goldfields Interconnect pipeline, linking WA’s two major north-south gas pipelines, was officially opened on Friday. 

Mr Watson, APA’s chief executive and managing director said the company had taken on some risk by building the $460 million pipeline ahead of confirming all gas contracts for the project, but believed it will spur investment in mining projects in the Goldfields over the next two-to-four years.

“A lot of these mining operators who know there’s opportunity in the ground there for them need to be able to have reliability of energy supply to get things funding for their projects to get off the ground,” he said

“We’re investing ahead of our customer requirements to make sure we can encourage and attract investment into the region.”

WA Energy Minister Bill Johnston, who travelled to Ambania, east of Geraldton, for the opening, said linking the relatively untapped Perth Basin to the mining region signalled an opportunity for companies to consider downstream processing of critical minerals being extracted there.

“We’re talking to other companies who want to build processing infrastructure to take raw material and turn it into chemical products, and this would allow those projects to proceed as well,”