Mining Billionaire Backs Outback Gas Pipeline to Ease Power Woes
- Fortescue’s Forrest says Australian project makes sense
- Co. has undertaken ‘high-level conceptual studies,’ CEO says
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Billionaire Andrew Forrest is studying a proposed 1,500-mile (2,400-kilometer) transcontinental natural gas pipeline as part of his iron ore company’s strategy to diversify and to boost Australia’s power supply network.
Fortescue Metals Group Ltd. confirmed it has undertaken work for a duct that would link the gas-rich state of Western Australia with fuel-strapped East Coast power markets where the bulk of the population lives. The project, being considered by the federal government, may cost as much as A$5 billion ($3.9 billion), according to one industry estimate.