Technology Metals Australia Ltd (ASX:TMT) has inked an early works agreement with APA Operations Pty Ltd, a subsidiary of APA Group (ASX:APA) Limited, for the development of a pipeline to supply gas from the Perth Basin for the Murchison Technology Metals Project (MTMP).
APA Operations is constructing the Northern Goldfields Interconnect pipeline – intended to connect new and existing gas provinces to pipeline infrastructure in the Northern Goldfields region of Western Australia.
The proposed Gabanintha Gas Pipeline would be connected to the Northern Goldfields Interconnect and represents a key risk mitigation activity for TMT as part of the timely development of the MTMP, anticipated to provide a cost-effective, low-risk and efficient energy supply.
“Incredibly significant step”
“Progressing the early works for the development of the proposed pipeline with APA Operations is an incredibly significant step as we continue to de-risk the development of the MTMP, the world’s next large-scale primary vanadium mine, with an anticipated cost-effective, low-risk energy supply solution,” TMT managing director Ian Prentice said.
“This is another key initiative of the MTMP’s Implementation Phase.”
APA Operations will progress early works for the proposed pipeline under the agreement, including the preparation of licences, initial engineering design and identification of long lead procurement items.
The two companies will negotiate the associated development and gas transportation agreements for the pipeline in parallel with early work activities.
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