Australian Wesfarmers group’s Evol LNG unit signs supply agreement with gold mining project

Thursday, 17 September 2020
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Evol LNG, the Western Australian provider of liquified natural gas as a fuel for remote power stations and marine bunkering and a subsidiary of the Australian Wesfarmers Chemicals, Energy and Fertilisers group, has signed a supply agreement with Ora Banda Mining to supply a gold mining project.

The Davyhurst Gold Mine project, located about 50 kilometres southwest of Menzies in Western Australia, will use supplies from Evol for its power needs.

The gold mine, part of WA’s North-West Goldfields region, is restarting production in January 2021 after being mothballed but kept under maintenance in 2018.

“We are excited to support the Davyhurst mine back into production,” said Evol LNG’s Manager Nick Rea.

“Ora Banda is now our ninth mining customer and we are keen to provide them with the benefits and value that are afforded to our customers,” added Rea.

The mine will use LNG to fuel a 7.5 megawatts gas-fired power station, with supply planned to commence from December 2020.

Under the deal, Evol will build, own, operate and maintain the on-site LNG storage and vaporisation facility at the mine.

The facility will use Evol’s modular design which allows for fast installation and expandability if the mine’s energy requirements increase in the future.

Ora Banda Mining’s Managing Director David Quinlivan said the LNG volumes secure for his company a stable and secure long-term energy solution.

“The use of LNG as the primary fuel source for the Davyhurst power station also provides significant environmental benefits, explained Quinlivan.

“The company estimates its power generation greenhouse gas emissions will be reduced by approximately 25,000 tonnes during the initial five years of operation when compared to conventional diesel power generation,” he stated.

The LNG will be supplied from the small-scale Kwinana liquefaction plant using feed gas delivered from the North West Shelf gas fields via the Dampier-to-Bunbury natural gas pipeline.

The Kwinana plant has been expanded to meet growing market demand for power and other fuel requirements.

The plant previously produced 175 tonnes per day of LNG and the expansion boosted output to 250 tonnes per day from April 2020, with plans for a further expansion to around 300 tonnes per day in 2021.

Evol announced in earlier in September it had also secured a long- term supply to Horizon Power for the Esperance power project.

Horizon Power supplies Western Australia’s iron-ore industry and the Esperance project is a combined gas-fired and renewables venture, involving a gas power station, a 5.5MW Battery Energy Storage System, two new 4.3MW wind turbines and 10,000 solar panels.


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