EVOL LNG secures Doray Minerals' Deflector LNG contract
9 March 2016
Kleenheat's EVOL LNG has secured a contract to supply Doray Minerals Limited's (ASX: DRM) Deflector Gold-Copper project with approximately 4,560 tonnes of Liquefied Natural Gas ("LNG") per annum from its Kwinana LN plant commencing in April 2016.
The Deflector project, located 160km east of Geraldton in the Mid West Region of Western Australia, is a greenfield project with a purpose-built dual fuelld power station currently under construction.
The dual fuelled power station will be built, owned and operated by Kalgoorlie Power Systems (KPS), a subsidiary of Pacific Energy Ltd (ASX: PEA), and will be fuelled by 30 per cen diesel and 70 per cent natural gas.
EVOL LNG's Business Manager, Nick Rea said the company was pleased to have secured the contract, in particular during a period of historically low energy prices.
"Entering into an agreement with Doray during a period of historically low energy prices demonstrates our resilience in a highly competitive market, but the team's also been pretty innovative to bring costs down," he said.
"Among other key innovations, the on-site LNG storage and vaporisation facility will use a unique LNG vaporisation system, where waste heat from KPS's power station will be recovered to vaporise LNG instead of traditional ambient air fin vaporisers, making the solution more cost competitive, "
"By using LNG at Deflector, Doray will reduce its exposure to imported diesel costs, avert more than 3,800 tonnes (17 per cent) of carbon emissions per ye r compared to diesel, which is equivalent to removing more than 1,100 cars from the road, and support jobs in the local production and distribution of LNG," he said.
Doray Minerals Managing Director, Allan Kelly said the use of NG would provide the Deflector project with stable power and low energy costs throughout the init al life of the mine.
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