Clean Energy Fuels Australia secures site for WA LNG hub

Perth-based Clean Energy Fuels Australia has secured a long-term site lease for its planned LNG production hub in Western Australia.

The site is located in WA’s Mid-West region near the town of Mount Magnet, about 300 kilometres east of Geraldton.

CEFA says its LNG project is currently under assessment by the WA Planning Commission as a “significant development” in the new State Government planning pathway to support economic recovery from Covid-19.

Subject to approval, the small-scale LNG developer plans to start building the plant later this year.

LNG for remote power plants

The new plant will form part of the Mid-West LNG hub, which has a total cost of more than A$100 milion ($73.4m).

The hub will supply LNG as fuel to generate electricity for mines and remote communities across the region, providing an alternative to diesel with reduced energy costs and lower emissions, CEFA said.

The company is also working on solutions to displace diesel consumed in heavy mine haul vehicles with LNG.

CEFA selected Mount Magnet for its first WA-based LNG hub due to several advantages.

These include the location’s transport links, existing access to gas pipeline infrastructure, and proximity to remote power customers.

Furthermore, the firm is supported by US-based infrastructure fund I Squared Capital to deliver the hub. It has already secured access to natural gas and pipeline transport capacity.

Additionally, CEFA worked with a US-based specialist to design and engineer the modular LNG process plant.

The hub will include the first liquefaction train, LNG transport tankers, customer storage, and regasification facilities.

The LNG facility’s modular design will enable CEFA to add more LNG trains over time.

The firm estimates that over 25 years of operation, the first LNG train at the hub could displace around 3 billion litres of imported diesel with domestically-sourced natural gas.

This means reducing customers’ CO2 emissions by over 2 million tonnes, according to CEFA.

CEFA Managing Director, Romano Bernhard, said: “It is great to see the Mid-West LNG Hub coming to life.”

“Our recent execution of the site lease is a great milestone for the project and it keeps us on track to deliver LNG to our customers in the second quarter of 2021,” he added.

Most Popular

Venture Global files for IPO, plans to boost LNG export capacity to 104 mtpa

According to an SEC filing, Venture Global plans to list its Class A common shares under the symbol "VG"...

Update: Venture Global ships first Plaquemines LNG cargo to Germany

Venture Global’s 174,000-cbm newbuild carrier, Venture Bayou, is expected to deliver the shipment to Germany’s Brunsbüttel around January 8,...

LNG carrier orders climb in 2024

The data shows there were at least 78 orders for large LNG carriers in 2024. This compares to about 68...

More News Like This

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...

Australia’s Tamboran inks deal for small LNG facility

Australian firm Tamboran has entered into a framework deal with the Clean Energy Fuels Australia (CEFA) group of companies...

Clean Energy Fuels Australia secures gas for WA LNG hub

Perth-based Clean Energy Fuels Australia has signed a five-year gas supply deal for its LNG production hub in Western...

Clean Energy Fuels Australia inks LNG supply deal with WA Kaolin

A unit of Perth-based Clean Energy Fuels Australia, the developer of the Mount Magnet LNG production hub, has signed...