‘Aus­tralian first’ coal-to-gas plant

The Australian Energy Review - - NEWS - El­iz­a­beth Fabri

FOR­MER San­tos chair­man Stephen Ger­lach has an­nounced plans to build a $3 bil­lion coal-to-gas project in the North­ern Ter­ri­tory that could de­liver gas to the east coast as early as 2022.

The pro­posed An­dado project would be de­vel­oped by Ger­lach's Ebony En­ergy to sup­ply 50 peta­joules (PJ) per an­num of pipe­line grade gas for more than 25 years.

In Oc­to­ber, Ebony En­ergy com­pleted the scop­ing study for the project, which in­cluded plans for an above ground coal-to-gas pro­duc­tion plant; the first of its kind in Aus­tralia.

The plant will process coal mined from the Pedirka Basin into pipe­line qual­ity gas.

Ebony En­ergy has al­ready signed a Memorandum of Un­der­stand­ing (MOU) with Gen­eral Elec­tric (GE) to sup­ply the gasi­fi­ca­tion and plant tech­nol­ogy, and a sub­se­quent MOU with OSD to de­velop and op­er­ate a 670km pipe­line which will con­nect the plant to the Moomba gas hub in South Aus­tralia.

Mr Ger­lach said at 50PJ of gas per an­num, the project could meet about 8 per cent of the to­tal east coast do­mes­tic gas de­mand, mak­ing it a “sub­stan­tial con­tri­bu­tion” to eas­ing sup­ply un­cer­tainty.

“An­dado is a land­mark en­ergy in­fra­struc­ture project that on com­ple­tion can con­trib­ute greatly to solv­ing the east-coast gas sup­ply and pric­ing, and de­mand ad­just­ment is­sues we are see­ing cur­rently,” Mr Ger­lach said.

“While we have yet to ex­e­cute for­mal re­serve as­sess­ment work, the na­ture of the pro­duc­tion process gives Ebony a high de­gree of long term price cer­tainty.

“Our ini­tial 50PJ pa gas pro­duc­tion plan re­quires only 4 mil­lion tonnes pa coal sup­ply into the plant while Ebony’s ten­e­ment con­tains around 6 bil­lion tonnes of mid en­ergy, low ash, and low sul­phur coal.”

Ebony said it was cur­rently in search for funds to un­der­take ad­di­tional work, and was pre­par­ing to list on the ASX in early 2018.

Its Ini­tial Public Of­fer­ing (IPO) has been de­signed to raise about $50 mil­lion to fully debt fund the project.

The com­pany was also be­gin­ning off-take dis­cus­sions with gas users look­ing for long-term sup­ply.

“We be­lieve the An­dado Project rep­re­sents a win-win-win propo­si­tion for en­ergy se­cu­rity, the com­mu­nity and the en­vi­ron­ment,” Mr Ger­lach said.

“an­dado is a land­mark en­ergy in­fra­struc­ture project that on com­ple­tion can con­trib­ute greatly to solv­ing the east-coast gas sup­ply and pric­ing, and de­mand ad­just­ment is­sues we are see­ing cur­rently.”

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