Junior sulfate of potash producer Kalium Lakes Ltd., Balcatta, Western Australia, said on June 27 it has secured key contracts with well known, reputable organizations for the transportation and supply of gas to meet the requirements of its Beyondie Sulfate of Potash Project (BSOPP). These contracts will provide 1Tj of gas per day to produce 90,000 mt/y of SOP, and also allow for expansion to support increased production and production of magnesium byproducts.
Shell Energy Australia Pty Ltd. (Shell) has been awarded the contract for supply of gas to the BSOPP site, which will be utilized for power generation, steam generation, and product drying during operations. APA Group’s 88.2 percent-owned Goldfields Gas Pipeline (GGP) will transport and deliver gas via a new, purpose built metering and connection facility.
Early work has commenced with APA on the design of the new metering facility. These contracts are subject to a Final Investment Decision (FID) and subsequent notice from Kalium Lakes that it is ready to commence commissioning and production operations.
“The close proximity and ease of access to the GGP offers significant cost advantages to the BSOPP, which has allowed Kalium Lakes to own and operate its own gas pipeline, spur, and gas fired power station with funding provided by the Northern Australia Infrastructure Facility (NAIF),” said Kalium Lakes Chief Development Officer Rudolph van Niekerk. “Importantly, the award of the gas supply and gas transport operations contracts to Shell and APA are also within the budget allocated in the BFS and FEED outcomes. We can now also confirm that approximately 50 percent of our FOB cash operating costs have now been locked in, again on budget.”