Oil and Gas News

CEFA secures LNG supply contract with WA Kaolin

WA Kaolin has signed a 15-year contract for the supply of liquified natural gas (LNG) with Mid-West LNG, a group company of Clean Energy Fuels Australia (CEFA), for its Wickepin Kaolin project.

The supply of LNG will be used to fire the rotary kiln at Wickepin that dries the kaolin ore, which is the first step in the company’s proprietary K99 dry processing method.

CEFA is an established Perth-based company which provides integrated solutions developing small scale LNG infrastructure assets for remote mining operations and communities in Australia.

The company, through Mid-West LNG, is in the process of building a new LNG plant in Mount Magnet, located 600km north of Wickepin, and WA Kaolin will be the second customer supplied from the new facility.

The Mount Magnet LNG Hub is expected to become a $100 million investment when the site is built out with the ability to supply in excess of 500 tonnes per day of LNG.

The supply contract will commence January 1, 2022, and will run for 15 years with reviews at year five and year 10.

The contract is evaluated at $22 million over the 15-year period.

WA Kaolin CEO Andrew Sorensen said the company was thrilled to have entered into an agreement with CEFA.

“As we continue to progress our stage one work program towards our targets to be producing by year end 2021, it is vital for our development program that we lock in such important long term supplier agreements like this,” he said.