APA Group will construct a 198-kilometre gas transmission pipeline and a 45 megawatts gas fired power station to supply the Gruyere gold project in Western Australia by connecting it to the existing Eastern Goldfields Pipeline.
The new pipeline and power plant will have a total construction cost of $180 million and likely will be commissioned in late-2018, the company said in a statement on Wednesday.
It has signed a 15-year transportation and electricity supply agreement with the Gruyere joint venture partners - ASX listed Gold Road Resources and global miner Gold Fields.
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