Australia's UGL Bags $136 Million Roy Hill Power Contract from Alinta Energy

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Researched by Industrial Info Resources Australia (Perth, Australia)--Alinta Energy Limited (Sydney, Australia) has awarded a $136 million power systems contract to UGL Limited (North Sydney, Australia) to supply electricity to the $10 billion Roy Hill iron ore mine in Pilbara, Western Australia. UGL will provide design, procurement and construction services to power the mine and related and facilities.

The power project includes construction of a 123-kiilometer, 220-kilovolt (kV) transmission line from the Newman power station to the Roy Hill mine site. The project includes construction of substations at the Newman site and the mine, which will be rated at 66/220kV and 220/33kV, respectively, and construction of a 6-megawatt (MW), back-up, diesel-fired power station at the mine site.

Alinta Energy owns and operates the 169-megawatt (MW) gas-fired power station in Newman, Western Australia. The power plant was built in 1996 and consists of four 35-MW gas turbines manufactured by General Electric (NYSE:GE) (Fairfield, Connecticut). The station will be the primary source for electricity to the mine.

In 2013, Alinta signed a power-purchase agreement to provide electricity for the iron ore mine and created a special-purpose business entity called Alinta Energy Transmission (Roy Hill) Pty Limited (AETRH) (Perth, Australia) to manage the project. UGL is working with several subcontractors to build the transmission line and distribution facilities, along with the 6-MW, diesel-fired power station. Civil works, including bulk earth works, already have begun on the 220/33-kV substation; early site works at the Newman substation will commence in a few weeks' time. Completion of the power systems project is planned for first quarter of 2015.

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