The move is driven by growing demand from the mining sector to replace the use of diesel for power generation with a cleaner and more cost-effective natural gas solution.
The Kwinana LNG plant was built in 2008 with a nameplate capacity of 175 tpd. According to the statement, the facility will increase its capacity to 250 tpd from April 2020, with plans for a further potential expansion to approximately 300 tpd in 2021.
The newest addition to EVOL LNG’s growing mining customer base is Adaman Resources’ Kirkalocka Gold Mine. It is expected that Adaman Resources will save more than $2 million per year and reduce its greenhouse gas emissions by 25% by fuelling the mine’s power station with LNG instead of diesel.
EVOL LNG’s Manager LNG and Wholesale, Nick Rea, said: “Our expertise in small scale LNG and proven capability to deliver lower cost and cleaner LNG is enabling off-grid mines to move away from diesel.
“We are in advanced negotiations with several parties, and our confidence in future growth prospects has enabled us to commit to the first stage expansion, with front end engineering design (FEED) underway for the second stage expansion.
“We are fortunate that the Kwinana plant can be expanded with relatively minor investment in a manageable, staged process as demand grows,” said Mr Rea.
In the statement, EVOL LNG claims it currently has agreements in place with seven mining customers in the Goldfields and Mid-West regions of Western Australia, and operates a growing fleet of more than 30 road tankers to service its customers’ requirements.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08112019/evol-lng-commits-to-major-production-capacity-expansion/