Apache To Supply Gas For Western Australian Iron Project

Posted on

Apache Corp. has signed a contract to supply natural gas from the Reindeer field to CITIC Pacific’s world scale magnetite mining project in Western Australia.
  Aache and its Reindeer joint venture partner, Santos Ltd., agreed to supply 154 Bcf of gas over seven years beginning in the second half of 2011. Apache owns a 55% interest in the field and Santos owns the remaining interest.
  The gas will be supplied through a new, 65-mile offshore pipeline and a new onshore sales gas processing facility at Devil Creek, about 28 miles southwest of Dampier, with capacity to process 210 MMcf/d. Apache plans to sell additional production from the Reindeer field to other domestic customers in Western Australia.
  The gas sales agreement will not take effect unless Apache and Santos sign contracts for engineering and procurement of the gas plant and pipeline by mid-March 2009 (or a later date if agreed by all parties).
  According to a Rigzone report, CITIC Pacific Mining’s Sino iron project is under construction at Cape Preston, in Western Australia’s Pilbara region. With about 75% of capital expenditure committed, the project is the most advanced magnetite development in Western Australia. Earthworks for the power station and processing plant have been completed and the mine is under development. The first of the gas turbines and other major equipment have been manufactured and are ready for shipping to the site; other long lead-time components are currently being manufactured.