Kleenheat Gas’ EVOL LNG has secured an agreement with Saracen Mineral Holdings Ltd (Saracen) to supply 7000 t of LNG each year to Saracen’s Carosue Dam Operations 120 km 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 km 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.
Saracen’s Managing Director, Raleigh Finlayson, said: “The change from diesel to gas is just part of Saracen’s ongoing review of all aspects of its business inputs to reduce costs and create shareholder value. The change will save approximately AU$ 2.5 million on power generation costs in a full year and will also significantly decrease our carbon emissions.”
“EVOL LNG has commenced an accelerated engineering and construction schedule that will see natural gas supply to Carosue Dam within four months. This is an aggressive campaign made possible by EVOL LNG’s expertise in professionally delivering LNG virtual pipeline solutions to remote locations,” said Nick Rea.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25092014/evol-lng-to-supply-lng-to-saracen-carosue-dam-operations-1472/