Pilbara Clean Fuels Pty Ltd (PCF) is progressing a development concept for a new, mid-scale, low carbon footprint eLNG plant to be located at Port Hedland in Western Australia.
The project will provide an Australian LNG fuel supply capability through a new facility for the conversion of pipeline natural gas to LNG, responding to market demand for cleaner marine bunker fuel for iron ore carriers operating ‘round-trip’ voyages out of Port Hedland.
The ‘base case’ plant capacity is 0.5Mtpa, with market analysis for Port Hedland indicating potential demand of 1.0 Mtpa by 2030. A key feature of the Project is a fully electrified plant with outsourced power supplied from predominantly renewable sources.
The plant design intent is to significantly reduce emissions compared to conventional LNG plants, thereby providing the ability for ‘round-trip’ LNG bunkering in Port Hedland to achieve substantially lower overall GHG life-cycle emissions than other options.
The LNG re-fuelling concept is based on ship-to-ship bunkering of vessels while at anchor off Port Hedland.
Recognising the complementary aspects of their respective capabilities, project development and business objectives, PCF and Oceania have entered into a Memorandum of Understanding (MoU).
Under the terms of the MoU, PCF and Oceania have agreed an exclusive relationship through which to collaborate to develop an ‘end-to-end’ low-carbon profile eLNG production and marine vessel bunkering capability concept for the port of Port Hedland.
We believe the reduced GHG life-cycle profile of the concept, compared to the status quo, will fuel lively debate among stakeholders concerning the overall economic and environmental benefit and ‘value-add’ to WA’s iron ore resources through this attractive application of the State’s natural gas
PCF Managing Director, Robert Malabar commented.