The JV, known as Fortescue River gas pipeline, will build and operate a $178m gas pipeline from the Dampier to Bunbury natural gas pipeline to TransAlta’s 125MW dual-fuel power station at Fortescue Metals Group Solomon Hub.
TransAlta said that the construction of the 270km 16-inch pipeline will begin in July 2014, while the pipeline is expected to be operational in early 2015.
Once finished, the pipeline will provide natural gas to the TransAlta power station, which serves Fortescue Metals Group’s mining operations in Solomon Hub.
The pipeline project has been contracted to Fortescue under a 20 year agreement.
TransAlta president and CEO Dawn Farrell said, "This joint venture brings together the strengths of two companies with extensive experience in Western Australia to provide lower costs and a key piece of energy infrastructure to Fortescue."
TransAlta has a 43% interest in the joint venture.
