Liontown awards LNG supply contract
Published by Theodore Reed-Martin,
Editorial Assistant
LNG Industry,
Liontown Resources Ltd has entered a contract for supply of LNG to Mid-West LNG Pty Ltd, a group company of Clean Energy Fuels Australia (CEFA). The LNG supply contract is a key deliverable for the 95 MW Hybrid Power Station (the power station) at Kathleen Valley. The power station comprises wind turbines, solar panels, battery storage, diesel and gas fired generators, which is designed to operate in ‘engine off’ mode enabling Liontown to operate from 100% renewable energy during periods of high wind and solar penetration.
LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub (the Hub) located at Mt Magnet, around 370 km from Kathleen Valley. The Hub is directly connected to the Mid-West Gas Pipeline, which connects to the Dampier to Bunbury Gas Pipeline, providing access to natural gas fields in the mid-West and North-West.
The 15-year supply contract aligns to the Zenith Power Purchase Agreement1 and enables flexibility for quantities and access to ‘sprint’ capacity as required throughout the contract period. This will support Liontown’s target to be at least 60% renewably powered from start-up, whilst having 100% thermal power redundancy for the operation. The contract comprises fixed and variable charges for gas supply, liquification and transport.
LNG supply will commence in January 2024 to support planned early plant commissioning activities.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/10112023/liontown-awards-lng-supply-contract/
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