Sheffield signs LNG deal with Woodside, Energy Developments

Sheffield Resources has signed a deal with Woodside Petroleum and Energy Developments for the supply of liquified natural gas to the Thunderbird mineral sands project in the Kimberley.

Under the agreement, Woodside and EDL will supply and deliver 1,950 terajoules of LNG per year to the project over a 15-year period.

The LNG will be supplied from Woodside’s Pluto plant near Karratha and be distributed through a joint venture with EDL.

The JV will own and operate a purpose-built road tanker fleet to deliver the LNG to Sheffield.

In a statement to the ASX, Sheffield said LNG provided a low-emission fuel source suited to the ilmenite low temperature roast process proposed for the Thunderbird processing plant.

The Thunderbird project is anticipated to start production in 2020 with a 42-year mine life.

Sheffield managing director Bruce McFadzean said Thunderbird was now fully permitted and construction ready.

“We are extremely pleased with the level of support shown by Woodside and EDL in delivering a low-cost, long-term energy solution for Thunderbird,” he said.

Sheffield received loan approvals totalling $95 million from the Northern Australia Infrastructure Fund and a subsequent mine lease from the WA Department of Mines, Industry, Regulation and Safety in September for Thunderbird.