New LNG hub looks to displace diesel

The Energy Transition Platform will focus on reducing the carbon footprint of energy intensive industries in Australia, with its initial focus on the Western Australian mining sector through an LNG hub at Mount Magnet.

The platform is expected to invest up to $500 million on assets providing low-carbon and renewable solutions, including offering an integrated solution to remote mining customers to meet their evolving energy including LNG to power generation and the transition towards green hydrogen.

CEFA General Manager Commercial Romano Bernhard said CEFA has secured Silver Lakes Resources’ Deflector Gold Mine as its foundation customer, which will help a positive final investment decision for the Mid-West LNG Hub.

“The Mid-West LNG Hub at Mount Magnet is planned to have a capacity of up to 100,000 t per annum, built across multiple phases,” he said.

“In addition, CEFA has secured a site in Port Hedland – which will serve as CEFA’s second LNG Hub in the Pilbara region.

“Across these hubs, CEFA aims to build modular and flexible LNG liquefaction plants with cumulative capacity of up to 200,000 t per annum.

“CEFA estimates that over 25 years of operation, these projects could displace around 6 billion L of imported diesel with domestically sourced natural gas and reduce customers’ CO2 emissions by over 4 million t.”

CEFA Director David Trembecki said the Mid-West LNG Hub is the first building block in CEFA’s Energy Transition Platform that will support the decarbonisation of the Australian economy.

“It is a step towards achieving greater energy independence for the nation as LNG is produced from domestic gas as opposed to diesel which is largely imported,” said Mr Trembecki.

“The Mid-West LNG Hub will create the impetus for future CEFA development projects and pave the way for sustained emissions reductions in years to come.”

The first LNG deliveries are expected to commence during the third quarter of 2021, with the Mid-West LNG Hub already recognised as a significant regional development by the Western Australian Government.

The overall investment in the Mount Magnet facility is expected to be more than $100 million.

For more information visit the CEFA website.

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