Shell, APA win Kalium gas contracts

Kalium Lakes has awarded Shell the gas supply contract, and APA Group the gas transport contract, for its Beyondie sulphate of potash project.

Shell secured the contract for supply of gas to the Beyondie site, which will be utilised for power generation, steam generation and product drying during operations.

APA Group’s 88.2 per cent owned Goldfields gas pipeline will transport and deliver gas via a new, purpose built metering and connection facility.

Early works have commenced with APA on the design of the new metering facility.

The value of the contracts was not disclosed.

The contracts are subject to a final investment decision, which is expected to occur by the end of this half year or early next half.

Kalium said the contracts would provide one terra joule of gas per day to produce 90 kilo tonnes per annum of sulphate of potash per annum, and also allowed for expansion to support increased production and production of magnesium by-products.

Kalium Lakes chief development officer Rudolph van Niekerk said the close proximity and ease of access to the Goldfields pipelines offered significant cost advantages to Beyondie.

Mr Niekerk said this allowed Kalium to own and operate its own gas pipeline, spur and gas fired power station, with funding provided by the Northern Australia Infrastructure Facility.

“Importantly, the award of the gas supply and gas transport operations contracts to Shell and APA are also within the budget allocated in the BFS and FEED outcomes,” he said.

Beyondie is located 160 kilometres south-east of Newman.