Kleenheat Gas’ Evol LNG has secured an agreement with Saracen Mineral Holdings to supply 7,000 tonnes of liquefied natural gas (LNG) each year to Saracen’s Carosue dam operations 120km north-east of Kalgoorlie in Western Australia.
From January 2015, LNG produced at Kleenheat Gas’ Kwinana production facility will be transported by Evol LNG’s road tanker fleet 750 kilometres to Carosue Dam.
Evol LNG will build, own and operate an onsite LNG storage and vaporisation facility to supply natural gas to the existing diesel power station, which will be converted to dual-fuel operation.
‘This agreement highlights the opportunities of LNG as a primary fuel for remote power generation, particularly in the Goldfields and Mid-West regions,” said Nick Rea, Evol LNG’s Business Manager.
Saracen’s decision to use LNG as its primary fuel for site power is part of an ongoing cost reduction drive, with LNG offering significant cost savings compared to diesel. LNG pricing is also stable and not linked to oil prices, providing Saracen with a higher degree of cost certainty.
Press Release, September 25, 2014; Image: Evol LNG