MRL Energy continues to build its capabilities as supplier of gas power generation. During the quarter through the completion of its first gas-fuelled plant at the 43.1% MRL-owned Mt Marion Lithium Project. The plant is now commissioned and the site is running on LNG. The installation is a harbinger of MRL’s capability as the Company transitions its sites to gas. MRL plans to install and operate remote LNG and gas plants for itself and external clients. MRL’s gas and LNG supply chain solution is fully vertically integrated. The supply chain includes natural gas acquisition, capability for conversion to LNG, distribution and storage at remote sites and generation of power and fuelling of mine site equipment. The access to gas resources was strengthened by MRL’s 19.36% strategic investment in Empire Oil and Gas (ASX: EGO) to advance access to natural gas supplies. Empire is a Perth Basin onshore conventional gas and condensate producer and explorer with a production and processing facility located 150 km north of Perth. MRL and Empire also executed final documentation of an A$15.1m revolving working capital facility to refinance an ERM Power debt obligation. The new facility was used to repay Empire’s existing ERM Power debt obligation. MRL plans to transition diesel plants to gas at other remote sites. New Cryogenic plants will convert natural gas to LNG and distribute it to clients’ remote operations where power generation and heavy plant will be progressively switched from expensive diesel to the more economical and environmentally friendly gas.
EGO Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
