Adelaide-based Leigh Creek Energy (LCK) said it has inked a binding Heads of Agreement with South Korean engineering and construction company DL E&C Co., Ltd. to exclusively negotiate the terms of a proposed agreement for the feasibility study, front end engineering and design (FEED) stages, and engineering, procurement, construction, and commissioning (EPCC) for its Leigh Creek Energy Project (LCEP) in South Australia.
The two companies have until May 31 to negotiate the terms and conditions of the proposed agreement. If they reach an agreement, LCK said finance for the feasibility study, FEED, and EPCC contract will be arranged either by itself and/or by DL E&C.
LCK plans to establish a 1 million mt/y urea facility utilizing in-situ gasification (ISG) at LCEP, located some 550 kilometres north of Adelaide and overlaying the Leigh Creek coalfield (GM Jan. 22, p. 1). The company’s board in March made the final investment decision (FID) to proceed with Stage 1 of the project comprising drilling of up to five initial gasification wells to provide feedstock syngas and the construction of a 5 MW power plant (GM March 19, p. 1) .
Once the agreement with DL E&C is finalised, LCK said it will retain 100 percent ownership of the LCEP.