27/10/2014 - 15:00

Clough partners with GE

27/10/2014 - 15:00

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Perth engineering firm Clough is targeting small-scale liquefied natural gas (LNG) projects as a new growth area, after signing a ‘teaming’ agreement with global company GE Oil & Gas.

Clough partners with GE
Clough chief executive officer Kevin Gallagher.

Perth engineering firm Clough is targeting small-scale liquefied natural gas (LNG) projects as a new growth area, after signing a ‘teaming’ agreement with global company GE.

The new deal is an extension of the cooperation agreement Clough had previously signed with Texas company Salof, which GE bought in 2013.

Clough and GE are targeting remote power stations, mine sites and transport operators that currently rely on diesel.

They plan to provide an end-to-end LNG fuel solution that will convert natural gas into LNG and deliver it to the final point of use, including all the associated infrastructure, storage and transportation.

Clough CEO Kevin Gallagher said that replacing diesel with LNG would enable clients to sustainably reduce energy costs and carbon emissions.

“LNG fuel is cost-effective, clean and safe, and makes use of abundant Australian gas resources,” he said in a statement.

Clough and our partner GE aim to become the enabler for clients to convert from imported diesel to domestically supplied gas.”

GE currently has more than 25 small-scale LNG plants in operation and under development.

The Clough-GE venture will be competing with Wesfarmers subsidiary EVOL LNG, which recently signed a deal with Saracen Mineral Holdings to supply 7,000 tonnes of the resource per year to its Carosue Dam operations north of Kalgoorlie.

EVOL LNG will transport the product from Kleenheat Gas’s Kwinana production facility in a road tanker fleet 750 kilometres to Carosue Dam.

As part of the deal, EVOL LNG will build, own and operate an onsite LNG storage and vaporisation facility to supply natural gas to an existing diesel power station, which will be converted to a dual-fuel operation.

It is also expanding its network of refuelling stations, currently in Welshpool, Geraldton, Kalgoorlie, Mount Magnet and Newman.

Iron ore miner Fortescue Metals Group is looking to cut its diesel reliance, and is currently building a gas pipeline to its Pilbara mine sites.

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