EVOL LNG wins Saracen supply contract

25/09/2014 - 14:58

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A subsidiary of Wesfarmers, liquefied natural gas supplier EVOL LNG, has won a deal with Saracen Mineral Holdings to supply 7,000 tonnes of the resource per year to its Carosue Dam operations north of Kalgoorlie for an undisclosed amount.

EVOL LNG wins Saracen supply contract
EVOL LNG tanker travelling through the Pilbara.

A subsidiary of Wesfarmers, liquefied natural gas supplier EVOL LNG, has won a deal with Saracen Mineral Holdings to supply 7,000 tonnes of the resource per year to its Carosue Dam operations north of Kalgoorlie for an undisclosed amount.

EVOL LNG will transport the product from its parent company Kleenheat Gas’ Kwinana production facility in a road tanker fleet 750km to Carosue Dam.

Also 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.

It will be converted to a dual-fuel operation.

“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,” Saracen managing director Raleigh Finlayson said.

“The change will save approximately $2.5 million on power generation costs in a full year and will also significantly decrease our carbon emissions.”

EVOL LNG manager Nick Rea said the company had started an engineering and construction schedule that will have the operation ready to supply gas to the 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,” he said.

Saracen’s share price closed 2.5 per cent lower at 38 cents per share.

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