Australian gold miner inks gas supply pacts
Sydney-listed gold miner Red 5 has entered into two contracts for the supply of gas to its King of the Hills (Koth) gold project in Western Australia, the company said on May 27. The gas will be supplied via the Goldfields pipeline which is about 12 km west of the mine.
Red 5 has signed a gas supply pact with Alinta Sales, a subsidiary of Alinta Energy. It has also signed a gas transport agreement with energy infrastructure company APA.
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The agreement with Alinta has an initial term of three years starting in early 2022, with an option to extend the contract period for a further two years. The contract has a fixed-price tariff with annual escalation for a daily contract quantity of 4,250 gigajoules.
The gas transport agreement with APA consists of three contracts covering construction for the pipeline lateral connection and gas let down station, transportation agreement and access deed. The gas agreement is for 10 years starting in the March quarter of 2022, Red 5 said.
Gas will be supplied from the Goldfields gas pipeline and the associated new gas pipeline infrastructure currently under construction. The gas pipeline capacity rate will be charged at a fixed price subject to CPI indexation over the contract period.
Gas will be supplied to the power station being built at Koth by Zenith Energy. The station will have approximately 30 MW of power generation capacity. This will comprise reciprocating gas fuel power generation and a 2 MW photovoltaic solar farm battery energy storage system.
“Our gas supply under these agreements will be integrated with a solar farm and battery, ensuring King of the Hills has a reliable and cost-effective power solution in place,” Red 5 managing director Mark Williams said.