DBP Development Group and TransAlta sign pipeline deal
DBP Development Group (DDG), 100% owned by DUET Group (ASX: DUE),
is pleased to announce it has formed an unincorporated joint venture with
TEC Pilbara Pty Ltd (a 100% owned subsidiary of TransAlta Corporation)
(TSX: TA; NYSE: TAC). The joint venture is to be called the Fortescue River
Gas Pipeline JV. Its first project will be to build, own and operate a natural
gas pipeline from the Dampier Bunbury Natural Gas Pipeline (DBNGP) to
Fortescue Metal Group’s (ASX: FMG, Fortescue) Solomon Hub operations in
Western Australia’s Pilbara region.
The 16 inch diameter pipeline – which will be called the Fortescue River Gas
Pipeline – will run from the DBNGP’s compressor station one (CS1) around
150km south of Karratha through to Solomon Hub, a distance of 270
kilometres. The pipeline will supply natural gas to the 125MW TransAlta
power station which services Fortescue’s mining operations in the region.
- The project has an estimated total cost of $178 million.
- The Fortescue River Gas Pipeline will be the longest gas pipeline built
in Western Australia during the past 10 years.
- A Fortescue subsidiary, FMG Pilbara Pty Ltd, will be the foundation
shipper on the pipeline under a 20-year, 100% take-or-pay gas
transportation contract with the Joint Venture.
The Joint Venture (in which a DDG company – DDG FR Pty Ltd – will have a
57% interest and TransAlta the remaining 43%) combines the natural gas
pipeline expertise of DDG with TransAlta’s experience of providing reliable
power to remote operations in Western Australia.
DBP Chief Executive Officer Mr. Stuart Johnston said the project would see
up to 200 new local jobs created during construction, including involvement
from local indigenous communities and over 70% of the project costs spent in
“Construction is scheduled to commence in July 2014 with completion around
the end of the year,” Mr. Johnston said, adding “we’re hopeful that there will
be opportunities for further expansion of the pipeline to other locations in the
“We are particularly delighted with this news as it comes following our recent
announcement of DDG’s appointment to build, own and operate the domestic
gas pipeline for the Chevron-operated Wheatstone project.
“DBP has an outstanding reputation as a safe and reliable developer, owner
and operator of critical pipeline infrastructure in Western Australia, and we
look forward to ensuring the standards we set are continued on this important
DBP Media contact
+61 08 9227‐8195
gtmedia strategic communication
About DBP Development Group:
DDG is 100% owned by DUET Group. DDG will be the owner and operator of the Ashburton
West Pipeline which, when construction is complete, will connect an existing gas pipeline
system to the DBNGP. DDG was established in 2011 to develop, own and operate gas
pipelines and associated infrastructure.
Fortescue Metals Group is the world’s fourth largest producer of iron ore and a top 20 ASXlisted
company. Since its formation 10 years ago, Fortescue has developed five mines and
constructed world class port and rail facilities in the Pilbara region of Western Australia. The
recent completion of the 40 million tonne per annum Kings mine at the Solomon Hub will lift
Fortescue’s sustainable production capacity to 155mtpa by March 2014. By unlocking the
potential of the Pilbara, Fortescue is playing an important role in supporting China’s
urbanisation and industrialisation. Fortescue shipped its first cargo of iron ore to Baosteel,
one of China’s largest steelmakers, in 2008. It has since exported more than 290 million
tonnes of iron ore, including 11 million tonnes for third parties, to customers in China and
South East Asia.
TransAlta is a power generation and wholesale marketing company focused on creating
long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating
a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s
focus is to efficiently operate geothermal, wind, hydro, natural gas and coal facilities in order
to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta
has been a responsible operator and a proud contributor to the communities in which it works
and lives. TransAlta has been selected by Sustainalytics as one of Canada’s Top 50 Socially
Responsible Companies since 2009 and is recognized globally for its leadership on
sustainability and corporate responsibility standards by FTSE4Good.