GAS SUPPLY EYED AS POWER FUEL FOR W. AUSTRALIA
The government of Western Australia reports 16 companies or groups have expressed interest in laying, owning, and operating a pipeline from Northwest Shelf gas fields to goldfields near Kalgoorlie.
The state invited companies to compile outline plans to transport gas about 700 miles from offshore gas fields in a $300-500 million project to replace a costly 220 mile electrical power line from Perth to Kalgoorlie.
Mining companies Western Mining Corp., BHP Minerals, and Normandy Poseidon announced a joint venture to apply to lay and operate the pipeline. They called for expressions of interest in pipeline construction.
Metal Bulletin, London, reported the three mining companies, operating as Goldfields Gas Transmission joint venture, appear to be front-runners for the pipeline contract. They could consume as much as 90% of the energy supply. A state government official said other entrants most likely will reveal their identities when proposals chosen for further study are announced in the next few months. The Government intends to have commitments to the project by mid-1994.
WHAT'S POSSIBLE
The state suggested one pipeline route in a preliminary proposal, but the intent is to encourage entrants to put forward their own ideas.
One possibility would be to use gas from offshore Griffin or North Rankin fields or onshore Tubridgi field to fuel a new power generating plant in the goldfield region. This could meet goldfield demand and allow excess power to be supplied to the national grid. Pipeline gas would be used for power generation and process heat for mineral extraction, serving existing and prospective projects along its length.
Lower cost natural gas fuel would act as a further incentive for investment in projects such as Mount Keith, Yakabindie, and Mount Weld mines and offer a cheap alternative to existing projects that rely on diesel powered generators.
The government estimated total energy demand for the region at 300,000 kw, including current and potential projects. Potential gas requirement, including supply to Kalgoorlie, is pegged at as much as 50 MMcfd.
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