Shell and APA Group will supply and transport gas for Kalium Lakes’ Western Australia potash project.
Subject to the company making a final investment decision (FID), Shell and APA will assist Kalium with the provision of 1 TJ of gas per day to produce 90 kilo-tonnes per annum of sulphate of potash (potassium sulphate) at its Beyondie Sulphate of Potash Project (BSOPP).
Shell will provide gas to the BSOPP site which will be used for power generation, steam generation and product drying operations, while APA will transport the gas through the Goldfields Gas Pipeline (GGP) to a new, purpose-built metering and connection facility.
Kalium was previously granted a licence to construct its own pipeline for connection to the GGP, and Kalium Chief Development Officer Rudolph van Niekerk said the close proximity of APA’s infrastructure had saved on costs.
“[This] 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,” he said.
“Importantly, the award of the gas supply and gas transport operations contracts to Shell and APA are also within the budget allocated in the bankable feasibility study and front-end engineering and design outcomes.”
Kalium is aiming to make an FID by the middle of this year and begin production in 2020.
The mine is anticipated to have a life of 30-50 years.
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