THE GOLDFIELDS GAS PIPELINE: 'OPENING A NEW FRONTIER'

Abstract

Gas exploration and development in the northwest Pilbara in WA has increased due to the commitment of the Goldfields Gas Transmission Joint Venture to a 1,380 km gas pipeline linking the north west Pilbara to the east Pilbara iron ore region and the northern and central Goldfields. Construction of the GGT pipeline was approved in January 1995 and it is expected the pipeline will be servicing major mining operations in Newman, Mt Keith, Leinster and Kalgoorlie by August 1996. Other existing mining operations located near the pipeline are expected to convert from distillate for power station fuel to gas in 1996-97. Major new mining prospects in these highly prospective minerals provinces also offer potential for increased gas demand and GGT Pipeline throughput.

The commercial arrangements for GGT Pipeline services are the first in Australia to be offered under the open access arrangements espoused by the Federal and WA Governments, and have set a benchmark for other pipelines in Australia. The innovative distance related pipeline tariff arrangements offer prospective gas shippers a simple method for evaluating use of the GGT pipeline and securing gas transmission services.

The GGT Pipeline has had and will continue to have a major effect on the WA gas scene, stimulating gas exploration by capturing an established base load energy market currently dependent on liquid fuels and stimulating further WA gas demand growth.