The Northern Goldfields interconnect (NGI) is expected to be operational by mid-2022, and is set to stimulate economic development in Western Australia. It has the potential open up new regions for development, supporting thousands of jobs both during and post-construction.
Chief executive officer and managing director Rob Wheals said having developed an interconnected gas grid on the East Coast that flexibly and seamlessly moves gas throughout eastern Australia, APA is thrilled to now be creating an interconnected Western Australian gas grid.
“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,” Wheals said.
“Importantly this $460 million investment creates a platform for further growth for APA as more and more resources customers seek energy solutions, including renewables and battery storage underpinned by natural gas.”
The NGI will connect to APA’s Goldfields gas pipeline (GGP) which in turn connects to its Eastern Goldfields network – creating an interconnected APA gas pipeline system covering 2690km from north to south and west to east.
Wheals highlighted that during the past five years, APA has already expanded its gas pipeline system by almost 500km of pipelines servicing the eastern Goldfields region.
“Each time we have extended the system in this dynamic region, we receive more requests for connection from miners wanting a reliable and affordable energy source, complementing variable renewable energy sources such as solar and battery storage. The NGI responds to that market-driven demand, without the need for state or federal government subsidies.” Wheals said
In addition the NGI is set to deliver double the additional capacity of 80 terajoules a day (TJ/d) to the Goldfields region compared with spending the same amount to expand the existing GGP, which is fully contracted at 202 TJ/d.
APA is confident that the project will provide customers a more holistic solution with the additional benefits of greater basin-on-basin gas competition and supply security including access to the emerging Perth Basin gas resource and APA’s gas storage and processing facility at Mondarra.
“The NGI is expected to be supported with an initial 25 per cent of capacity identified subject to project commencement and we have identified significant additional demand that we believe will crystallise with APA’s commitment to the project,” Wheals concluded.
