Technology Metals has signed an agreement with energy infrastructure company, APA Operations, to begin works on the Gabanintha gas pipeline.
The proposed pipeline is less than half the length originally proposed, which should result in lower gas transportation charges. The pipeline will allow an option to source gas from the emerging Perth Basin.
The Gabanintha gas pipeline development was originally outlined in a 2020 memorandum of understanding between the two companies. In addition to the early works, the agreement also provides a framework for further negotiations on additional contracts required for the work.
The gas pipeline is designed to come from a point east of Mt Magnet as a spur off the major Northern Goldfields Interconnect or NGI pipeline, that is currently being constructed by APA Group. The NGI is viewed as a key piece of infrastructure for WA, further supporting mining and industrial development in the mid-west and Goldfields regions.
Significantly, the proposed pipeline is less than half the length originally proposed in the feasibility study, which should result in lower gas transportation charges than previously expected. It also provides optionality to source gas from the emerging Perth Basin via the NGI that may further reduce the project’s gas costs.
The works to be completed by APA Operations under the agreement will focus on access for the proposed pipeline corridor, including preparation of licences, initial engineering design and preparation for procurement of long lead items.
It is expected the early works will be completed in 2022 to ensure that the construction of the pipeline is completed in line with the proposed MTMP development schedule.
The progression of the early works by APA for the pipeline is a key component of Technology Metals’ growth strategy to advance the Murchison vanadium project, and the company expects the gas pipeline will provide energy certainty for what its hopes will be the world’s next large-scale primary vanadium mine.
www.ferroalloynet.com
