WESFARMERS subsidiary EVOL LNG will supply about 4,560 tonnes of liquefied natural gas per year to a greenfield copper and gold project in Western Australia, under a new deal.
EVOL LNG, operated through Wesfarmers’ LNG division Kleenheat, will provide LNG from its Kwinana LNG plant to Doray Minerals’ Deflector Gold-Copper project, 160 kilometres east of Geraldton, starting in April 2016.
The LNG will be used on a purpose-built dual fuelled power station currently under construction at the facility which will be fuelled by 30 per cent diesel and 70% natural gas.
The dual fuelled power station will be built, owned and operated by Kalgoorlie Power Systems (KPS), a subsidiary of Pacific Energy.
EVOL LNG business manager Nick Rea said the company was pleased to have secured the contract, in particular during a period of historically low energy prices.
“Entering into an agreement with Doray during a period of historically low energy prices demonstrates our resilience in a highly competitive market, but the team’s also been pretty innovative to bring costs down,” he said.
“Among other key innovations, the on-site LNG storage and vaporisation facility will use a unique LNG vaporisation system, where waste heat from KPS’s power station will be recovered to vaporise LNG instead of traditional ambient air fin vaporisers, making the solution more cost competitive.”
“By using LNG at Deflector, Doray will reduce its exposure to imported diesel costs, avert more than 3,800 tonnes (17%) of carbon emissions per year compared to diesel, which is equivalent to removing more than 1,100 cars from the road, and support jobs in the local production and distribution of LNG,” he said.
Doray Minerals managing director Allan Kelly said the use of LNG would provide the Deflector project with stable power and low energy costs throughout the initial life of the mine.
Doray commenced open pit mining at Deflector in February and forecast the mine to have an initial mine life of six years, with significant exploration upside.