EVOL LNG has won a long-term contract with Gascoyne Resources’ wholly-owned subsidiary GNT Resources Pty Ltd for the supply of LNG to the Dalgaranga Gold Project.
Located approximately 70km north-west of Mt Magnet in Western Australia’s Murchison region, the mine will use LNG to fuel both Zenith Energy’s 15MW gas-fired power station and the 2.5Mtpa gold processing facility, with supply planned to commence in the second quarter of 2018.
EVOL LNG Business Manager, Nick Rea, said the project emphasises that trucked LNG can support a gas-powered microgrid at a remote mine site without the need for full diesel redundancy.
“Zenith Energy has developed a gas-fired solution with a fuel efficiency better than diesel generation that also delivers the required load-acceptance capability,” explained Rea.
EVOL LNG will build, own and operate a large on-site LNG storage and vaporisation facility at the mine. The facility will store more than one million litres of LNG which will keep the mine operating for up to two weeks if road access to the remote site is interrupted due to factors such as seasonal rainfall.
Gascoyne Resources’ Managing Director, Mike Dunbar, said the project’s 2.5Mtpa gold processing facility will also use LNG to fuel its carbon regeneration kiln, elution boiler and bullion furnace.
“Our decision to adopt LNG to fuel the project is about delivering the lowest energy costs, and doing so with a high level of reliability,” Dunbar said.
An example of the distributive LNG need
At the forefront of opportunities in the industrial gas and equipment business is the development of clean energy economies, with the industrial gas and equipment industry perfectly positioned to play a leading role in enabling a cleaner, greener future for all.
Here, we have a good example of how LNG can be a useful clean energy for industrial applications – and how significant the role of distributive LNG technologies are, and will be. The project emphasises that trucked LNG can support a gas-powered microgrid at a remote mine site without the need for full diesel redundancy.
EVOL explained that, “Mining and industry are increasingly seeking viable, low emission alternatives for their operations…” and this is the same of industry the world over. As part of the clean energies transition, LNG has a key role to play here and clearly there will be an integral function or part that the industrial gas equipment industry will be required to play with its synergistic technologies.
Delivering LNG by road, rail or ISO container, as opposed to pipelines, requires the right cryogenic pumps, valves, storage tanks, and tankers, and many more intricate solutions besides – all of which our industry leads and innovates in.
This is applicable across the world, with variations in how advanced regional LNG sectors are and how supported these are by their respective governments and/or funding.
Europe is at the heart of the clean energies transition, for example, and this is particularly relevant from a gases industry perspective; it is well-documented that the European gases business is a changing marketplace, striving to realise renewed growth while also subject to changes in market structure, a transformation in technologies and challenges in its macroeconomic climate. Clean energies are a new window of opportunity for the industry.
gasworld’s European Conference 2018 will explore this new business environment and exactly where the challenges and opportunities lie, providing insight into the little understood but fast-growing distributive LNG business and the continued ramp-up of the Hydrogen Economy.