Compressor Stations Expanded in Australia's Northwest

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Researched by Industrial Info Resources (Perth, Australia)--Expansions are well under way at two compressor stations owned by APA Group (ASX:APA) (Sydney, Australia) in northwest Australia, along the Goldfields Gas Pipeline.

The Goldfields Gas Pipeline spans more than two-thirds of Western Australia. At 860 miles (1,380 kilometres), it is the second-longest pipeline in the state. It supplies natural gas to mines and power generators in the Pilbara and Goldfields regions, and has a current capacity of 150 terajoules per day (TJ/d) (142 MMSCFD).

Both the Paraburdoo and Yarraloola compressor stations are being equipped with new Solar Centaur Compressor Packages and associated ancillary equipment and infrastructure. The expansion is the result of a new 20-year supply agreement with Rio Tinto Limited (NYSE:RIO) (Melbourne, Australia) to supply natural gas to fuel its West Angelas power generation facility. Approximately 22 TJ/d (20 MMSCFD) will be available to Rio Tinto from this expansion, and completion is scheduled for late September.

Construction had been running behind schedule recently, but construction contractor UGL Resources, a subsidiary of UGL Limited (ASX:UGL) (Sydney, Australia), is back on track. Construction also was running behind at the Yarraloola compressor station site, but personnel and resources were redirected from the Paraburdoo compressor station, and now both sites are back on schedule.

In addition to the expansion of these existing compressor stations, APA is in the process of constructing two new grassroot compressor stations along the Goldfields Gas Pipeline, in order to supply natural gas to the Mount Newman Joint Venture, of which BHP Billiton Limited (NYSE:BHP) (Melbourne, Australia) owns 85%. New compressor stations are to be built at Turee Creek and the Newman Inlet, in order to supply 23 TJ/d (21 MMSCFD). Looping of the existing Newman Lateral Pipeline was considered, but installing compression at the laterals inlet has been identified as a more commercially viable alternative.

The total capital expenditure for these expansion projects is expected to surpass $140 million (AUD$150 million) over the next two years, with APA managing the construction on behalf of the Goldfields Gas Transmission Joint Venture (Perth, Australia). APA owns 88.2% of the joint venture, with 11.2% being held by Alinta Energy Pty Limited (Sydney, Australia).

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