ASX-listed Sheffield Resources’ 50%-owned Kimberley Mineral Sands (KMS) has secured liquefied natural gas (LNG) for the Thunderbird mineral sands project, in northern Western Australia.
KMS 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, a subsidiary of Woodside Energy Group, and EDL LNG Fuel to Power – together the Woodside EDL Joint Venture (WEJV) – for the supply and delivery of about 650-trillion J/y of LNG to Thunderbird.
The LNG will be supplied by the 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 deliver the LNG to Thunderbird.
The agreement enables flexible, long-term gas supply to KMS for power generation. The agreement is subject to KMS making a final investment decision toward the development of Thunderbird, following the completion of project financing of the project.
“Woodside and EDL . . . 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,” Sheffield resources executive chair Bruce Griffin said.