Wellgreen Platinum signs LNG MOUs

Wellgreen Platinum Ltd has signed a Memorandum of Understanding (MOU) agreement with Northern Lights Energy LLC for the potential supply of LNG from Alaska to the Wellgreen PGM-Nickel-Copper project in Canada’s Yukon Territory.

The company has also signed an MOU agreement with General Electric Canada (GE) for the potential supply by GE of LNG power generation equipment and services. Wellgreen Platinum expects this to include GE’s comprehensive electrical infrastructure technology for the mine processing equipment, transmission technology, as well as control and automation equipment.

In a statement released on its website, Wellgreen Platinum believes that these MOUs establish the framework for LNG supply and power generation to meet the company’s goal of delivering cost effective and environmentally responsible energy for the Wellgreen project, where construction activities are anticipated to start as early as 2016.

Northern Lights Energy

In April 2013, the State of Alaska Legislature approved the Interior Energy Project to provide financing for the development of a natural gas liquefaction plant to be located on the North Slope of Alaska as part of a larger initiative to bring affordable, clean burning natural gas from Prudhoe Bay to the interior of Alaska.

In January 2014, the AIDEA Board selected Colorado-based strategic consulting, engineering and construction firm MWH Global as its private sector partner for the Interior Energy Project and Northern Lights Energy was established as a special purpose vehicle to serve as the project company.

The purpose of the MOU with Northern Lights Energy is to establish a framework for delivery of LNG to the Wellgreen project consistent with the goals of the Interior Energy Project, which requires that LNG from the project be supplied to certain, specified customers in Alaska on a priority and preferred basis. It is anticipated that the project, after it meets these preferred customers’ needs, will have additional supplies of LNG that Wellgreen may purchase under the terms of the MOU. The parties will also work together to determine if there are opportunities to make Alaskan LNG available to provide clean and competitively priced power to communities in the Yukon along the Alaska Highway, such as the Kluane and White River First Nations.

Wellgreen Platinum’s President and CEO, Greg Johnson, said: “We are very pleased with this agreement with Northern Lights Energy which fits Wellgreen Platinum’s timelines and objectives of utilizing a cost effective and environmentally responsible source of energy for the Wellgreen project. We believe this supply of LNG may potentially bring additional benefits from the Interior Energy Project to both Alaskans and to Yukon communities along the Alaska Highway, which currently rely on more expensive and less environmentally friendly diesel for power generation. This agreement also demonstrates the opportunities for other infrastructure-related cross-border working relationships that can benefit communities in the Yukon and Alaska.”

LNG power generation and electrical equipment

Under the terms of the agreement with General Electric Canada, GE would provide products and services for the Wellgreen project, including a complete power generation and transmission network for the project.

GE’s products include a full suite of integrated power and automation components, including GE Jenbaucher natural gas generators, main substations, all applicable motors, drives, motor control centres and controls throughout the mine surface plants and underground. The two parties will also work together in the consideration of the design of control systems, substations and field bus connected devices, utilising GE’s technology.

John Sagman, COO of Wellgreen Platinum said: “Our agreement with GE has the potential to expedite development of the Wellgreen project as an efficient, safe and sustainable operation. In addition to their leading-edge technology, GE also has the capability to provide vendor financing packages, maintenance packages and opportunities to provide power generation solutions to the First Nations communities near the Wellgreen project.”

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/05062014/wellgreen_platinum_signs_lng_mous_711/