16/09/2020 - 15:59

Proposed $100m+ LNG hub for Mid West

16/09/2020 - 15:59

Bookmark

Save articles for future reference.

A $100 million LNG hub has been proposed for Mount Magnet, to supply gas for remote mine sites and communities.

Proposed $100m+ LNG hub for Mid West
Gas would be liquefied for transport to remote sites which do not have a pipeline connection. Photo: Gabriel Oliveira

A $100 million LNG hub has been proposed for Mount Magnet, to supply gas for remote mine sites and communities.

Perth-based Clean Energy Fuels Australia said it had secured a lease for a site to build the plant at Mount Magnet, 300 kilometres east of Geraldton.

The plant would use about 15 terajoules of gas per day and produce about 250 tonnes daily of LNG.

To put that in context, Wesfarmers subsidiary Evol LNG already operates a 175t/d plant in Kwinana, trucking the fuel to regional areas.

Clean Energy Fuels Australia managing director Romano Bernhard told Business News significant development assessment by the Western Australian Planning Commission is ongoing, while environmental approvals should come before the end of the year.

Mr Bernhard said he hoped to get construction under way before the year is out, although there is work to be done finalising contracts for gas supply and users.

Private equity business I Squared Capital would be supporting the development, he said.

Clean Energy had designed the plant in house, working with a US specialist to develop a modular construction approach.

Mr Bernhard said the business intended to displace diesel in remote power uses.

Shire of Mount Magnet chief executive Kelvin Matthews said the council supported the development.

“The council welcomes appropriate developments in the Mount Magnet region, especially those that create long term jobs, provide opportunities for local residents to develop new skills, improve the competitiveness of existing business, and help to unlock other development opportunities in the region,” Mr Matthews said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options