Aussie lithium developer Liontown awards LNG supply contract to Mid-West LNG
Liontown Resources, a Sydney-listed lithium development company, has awarded a 15-year contract to Mid-West LNG, a unit of Perth-based Clean Energy Fuels Australia (CEFA), for the supply of LNG, it announced on November 8.
The contract will commence in January 2024 and will support Liontown's Kathleen Valley lithium project in Western Australia, which is an off-grid wind-solar-battery storage renewable energy facility in Australia. The company did not provide any other details about the deal.
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LNG will be produced at the CEFA Mount Magnet Mid-West LNG Hub and the gas will be used to fuel a 95 MW hybrid power station at Kathleen Valley. The power station is designed to operate in "engine off" mode, enabling Liontown to operate from 100% renewable energy during periods of high wind and solar penetration.
The LNG supply contract is a key deliverable for the Kathleen Valley lithium project and will help Liontown achieve its renewable energy targets and ESG credentials.
Mid-West LNG is targeting not only remote mining customers but also remote communities and towns that are not connected to electricity and/or gas pipeline infrastructure. The primary use of LNG would be to replace diesel in power generation or in mobile equipment like mine haul vehicles, locomotives, and marine. Other uses of LNG include heating for domestic use or for boilers in industrial applications.