A new liquefaction plant will be built in the Mid-West region within the next 24 months, subject to government approvals, and supply LNG for electricity generation to regional mines and communities. The plant will be the first stage of a proposed Mid-West LNG Hub, which is estimated to cost in the region of A$100 million. Once fully developed the project will produce 250 tonnes of LNG each day. Gas for the project will come from state gas fields, though the developer did not say whether or not it had signed offtake agreements with any operators or producers at this stage. CEFA plans to supply WA mining and industry with domestic LNG. Perth-Based Clean Energy Fuels Australia said today it had secured a long-term site lease for the plant and hoped to complete construction with first LNG production by the second quarter of next year. The company said it had selected Mount Magnet because of its proximity to transport links, existing pipeline infrastructure and mine sites. "Domestically produced LNG is materially cheaper than diesel - almost all of which is sourced from imported oil," CEFA managing director Romano Bernhard said in a statement to Energy News. "CEFA is also working on innovative solutions to displace diesel consumed in heavy mine haul vehicles with LNG while maintaining the same power delivery needed for mining operations." The company is backed by global infrastructure fund Squared Capital which is supporting the financial aspect of the new plant. According to CEFA long lead items for the facility have already been ordered and the company is working with an unnamed US specialist to design and engineer the modular LNG process plant.CEFA estimates that over 25 years of operation the first LNG train at the Mid-West LNG Hub would displace about 3 billion litres of imported diesel with domestically-sources gas. The construction of the Mid-West LNG Hub is fully supported by the Shire of Mount Magnet. The local council said the Hub would bring "significant economic benefits" to the remote town.
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