TransAlta Corporation, through a wholly owned subsidiary entity (TEC Pilbara), has formed an unincorporated joint venture with DBP Development Group (DDG), a wholly owned subsidiary of DUET Group. The joint venture is called the Fortescue River Gas Pipeline Joint Venture and its first project will be to build, own, and operate a $178 million natural gas pipeline from the Dampier to Bunbury Natural Gas Pipeline to TransAlta's 125 MW dual-fuel power station at Fortescue Metals Group's Solomon Hub. TransAlta has a 43% interest in the joint venture.

"TransAlta's business in Western Australia is focused on providing reliable, low cost power to its customers in the remote mining regions of the State," said Dawn Farrell, President and Chief Executive Officer of TransAlta. "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. The investment also provides an opportunity for future expansion in the Pilbara region and is consistent with TransAlta's strategy of growing in its core regions and diversifying its cash flows."

Tags: TransAlta Corporation