Energy Developments  

North West WA is starting to make the transition to (locally abundant) LNG for its power needs, which should displace a lot of their diesel dependency for electricity generation. Energy Developments is diversifying from its specialty in landfill gas based power generation to build 5 new power stations across the Kimberly region. The LNG will be sourced from another new plant at Karratha with the gas coming from Santos and Apache Energy.

While this is an improvement of sorts I'd far prefer to see a big effort to build solar and tidal powered generation facilities in that region, as conditions are perfect for both of them. The local mining and energy industries are awash with cash at the moment, so siphoning off some money to support the commissioning of renewable energy generation infrastructure shouldn't be that much of a challenge (and there would never be a better time for it).

Energy Developments Limited (ENE) announced that its 20-year Power Purchase Agreement with Western Power Corporation for the West Kimberley Power Project has finally been declared unconditional. The Company will build, own and operate five new power stations for the West Kimberley towns of Broome, Derby, Camballin/Looma, Fitzroy Crossing and Halls Creek. The four largest power stations will be fuelled by natural gas transported as liquefied natural gas (LNG) from a new LNG plant that the Company will build near Karratha.

MD Mr. Chris Laurie said that the project will bring future benefits to the region, with Energy Developments looking to further the domestic LNG market in the mining, rail, and heavy road transport sectors, especially in the Pilbara and Kimberley regions of Western Australia. “Interest in LNG as a replacement for diesel in large mining and transport operations is now being evaluated by a number of companies, as the cost of oil and the focus on environmental issues increases,” Mr. Laurie explained.

The company says that major contracts have already been executed for the supply of the skid mounted LNG plant, the LNG storage tanks, LNG road tankers, and the Caterpillar generator sets for the five power stations. Agreements have also been executed for the supply of natural gas to the LNG plant, and gas transport via the Dampier to Bunbury Natural Gas Pipeline. Natural gas for the LNG plant will be supplied under a long dated contract from the Apache Energy/Santos owned John Brookes offshore gas field on the North West Shelf. Diesel fuelled backup generating capacity will be in place in the event of LNG supply delays.

Construction of the 160 tonnes per day LNG plant at Karratha is expected to be complete in the fourth quarter of calendar 2006, with the Broome and Derby power stations scheduled to commence operations in the first quarter of calendar 2007. The other three power stations will be brought on line over the following three months, the company said.

(Disclaimer: Unlike most Australian energy companies mentioned here I don't currently have an interest in ENE, having been burnt severely in the past when their efforts to commercialise the SWERF renewable energy technology failed).