Sheffield Resources says the joint venture that manages the Thunderbird mineral sands project in Western Australia has secured a supply of LNG for at least five years from subsidiaries of Woodside Energy Group Ltd and EDL.
Kimberley Mineral Sands, owned 50:50 by Sheffield Resources and Yansteel, has executed a binding five-year agreement, with the ability for the parties to extend for a further five years, with Woodside Energy (LNG Fuels & Power) Pty Ltd, a subsidiary of Woodside Energy Group Ltd (Woodside) and EDLLNG Fuel to Power Pty Ltd (EDL) for the supply and delivery of approximately 650 tj/y of liquefied natural gas (LNG) to the project.
LNG will be supplied by the Woodside/EDL joint venture (WEJV) from Woodside’s Pluto LNG Truck Loading Facility, near Karratha in Western Australia, and transported to the KMS LNG storage facility by WEJV. WEJV will own and operate a purpose-built road tanker fleet to safely and reliably deliver the LNG to Thunderbird.
The agreement enables flexible, long-term gas supply to KMS for power generation, Sheffield said, adding that it was subject to a number of customary conditions precedent, including KMS making a final investment decision toward the development of Thunderbird, following the completion of project financing of Thunderbird.
Sheffield Resources Executive Chair, Bruce Griffin, said: “We are extremely pleased KMS have established a strong relationship with Woodside and EDL as they support KMS by delivering a low cost, efficient energy solution for Thunderbird. Thunderbird construction is continuing to advance at a significant pace and remains on track for first production in early 2024.”
A bankable feasibility study released earlier this year outlined a A$484 million ($314 million) Stage 1 project using a Single Mining Unit Plant that underpinned a 10.4 Mt/y mining operation and a processing plant design feed rate of 170 t/h. The Stage 2 project saw a duplication in year five of Stage 1 mining underpinning a 20.8 Mt/y mining operation and an increase in the processing plant feed rate to 290 t/h.
Earlier this month, Pacific Energy signed a 15-year Power Purchase Agreement with KMS, wherby Pacific Energy will design, build, own and operate a 16 MW high efficiency gas power station combined with 2 MW of battery storage and an on-site LNG storage and re-vaporisation facility with 10 days’ storage capacity for the Thunderbird project.