Australia’s Wesfarmers to sell Evol LNG to CEFA

A unit of Australia’s Wesfarmers has agreed to sell its small-scale LNG distribution business Evol LNG to Clean Energy Fuels Australia (CEFA).

Besides the LNG distribution business, Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) announced on Thursday it will sell also its LPG distribution business to Supagas.

The divestment does not include Kleenheat’s natural gas retailing business, including Kleenheat’s LPG & LNG production facility in Kwinana, WesCEF said.

Evol LNG currently operates as part of Kleenheat.

The deal remains subject to certain consents and approvals, including from the Australian Competition and Consumer Commission.

WesCEF said the completion date of the Evol LNG sale is expected to be November 2024.

The firm did not provide financial details of the transaction.

Evol LNG primarily sells LNG to remote mining customers in Western Australia for their mine-site power generation requirements.

Last year, Evol LNG secured a long-term contract to supply 10,000 tonnes of LNG per year to Aurenne’s Mt Ida gold mine in Western Australia.

Evol LNG said at the time it will load LNG in intermodal ISO tank containers at Kleenheat’s 250-tonne per day Kwinana production facility south of Perth.

On the other hand, Perth-based CEFA, backed by US infrastructure investor I Squared Capital, owns the Mount Magnet LNG production hub in Western Australia.

According to CEFA’s website, the firm completed the initial facility in 2021, with a 500 percent expansion completed in 2023.

CEFA says the hub has LNG production capacity of up to 250 tonnes per day.

Last year, Australian firm Tamboran also entered into a framework deal with the CEFA group of companies to obtain exclusivity over gas compression and liquefaction facilities for potential early production from the onshore Beetaloo Basin.

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