Liontown awards gas supply contract at lithium project
Published by Jane Bentham,
Editorial Assistant
Global Mining Review,
Liontown has awarded a contract for the supply of LNG to Mid-West LNG Pty Ltd, a group company of Clean Energy Fuels Australia (CEFA).
Highlights:
- LNG fuelled thermal power is a key component of the 95 MW Hybrid Power Station at the Kathleen Valley Lithium Project, expected to be among the largest off-grid wind-solar-battery storage renewable energy facilities in Australia.
- The initial LNG supply will commence in January 2024 in time for planned early commissioning activities.
- The contract contemplates renewable energy penetration in line with Liontown’s target to be at least 60% renewably powered from start-up whilst providing surety of supply.
The LNG supply contract is a key deliverable for the 95 MW Hybrid Power Station (the power station) at Kathleen Valley. The power station comprises wind turbines, solar panels, battery storage, diesel, and gas fired generators, which is designed to operate in ‘engine off’ mode enabling Liontown to operate from 100% renewable energy during periods of high wind and solar penetration.
LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub (the Hub) located at Mt Magnet, around 370 km from Kathleen Valley. The Hub is directly connected to the Mid-West Gas Pipeline, which connects to the Dampier to Bunbury Gas Pipeline, providing access to natural gas fields in the mid-West and North-West.
The 15-year supply contract aligns to the Zenith Power Purchase Agreement and enables flexibility for quantities and access to ‘sprint’ capacity as required throughout the contract period. This will support Liontown’s target to be at least 60% renewably powered from start-up, whilst having 100% thermal power redundancy for the operation. The Contract comprises fixed and variable charges for gas supply, liquefaction, and transport.
LNG supply will commence in January 2024 to support planned early plant commissioning activities.
Liontown Managing Director and CEO, Tony Ottaviano, said:
“Liontown has secured a quality, regional West Australian contractor in CEFA to supply LNG to Kathleen Valley, ensuring the overall project remains on track for first production mid-2024.
“Kathleen Valley’s Hybrid Power Station will be commissioned in early 2024, aligning with first production mid-2024.
“We are focused on our renewable energy target of at least 60% at start up delivered through wind, solar, battery storage, and thermal components of LNG generation. Our LNG supply contract with CEFA enables reliability of supply and through an ‘engine off’ mode we will be able to operate from 100% renewable energy.
“We remain focused on our commitment to deliver on our ESG credentials and establish industry-leading carbon emissions from the outset.”
Read the article online at: https://www.globalminingreview.com/mining/10112023/liontown-awards-gas-supply-contract-at-lithium-project/
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