APA Group has received final approval from the Western Australian Department of Mines, Industry Regulation and Safety for the construction of the 198km Yamarna Gas Pipeline (YGP).

Pipeliner reported civil and construction work and installation of the generators and gas engines has also begun at the 45MW Gruyere Power Station, which will be connected to the YGP.

APA will also design, build, own and operate the pipeline and the 45MW gas-fired power station, at a total construction cost of around $180 million.

APA has subsequently appointed Nacap Australia as the construction contractor for the pipeline.

Nacap has begun establishing a temporary 200-person construction camp along the pipeline route and will mobilise its workforce to site to begin works in February 2018.

The Gruyere Gold Project is a 50:50 Joint Venture between Gold Road Resources and Gold Fields (Gruyere JV), and is located in the Yamarna greenstone belt of Western Australia, 200km northeast of Laverton and to the north of APA’s Eastern Goldfields Pipeline.

A 15-year transportation agreement has been entered into to support a 15-year Electricity Supply Agreement with the Gruyere JV to deliver the necessary energy for the project.

Gas will be transported almost 1,500km to the site using four of APA’s interconnected gas pipelines: Goldfields Gas Pipeline, Murrin Murrin Lateral, Eastern Goldfields Pipeline and the Yamarna Gas Pipeline.

Commissioning of both pipeline and power station is expected to be in late 2018, to align with the Gruyere JV’s expectation of first gold scheduled for early 2019.

Construction is expected to be complete by the June 2018 Quarter.

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