With two Engineering, Procurement, Construction, and Management (EPCM) contracts awarded, Leigh Creek Energy Limited (ASX:LCK) makes another milestone towards Stage 1 Commercial Development of the Leigh Creek Energy Project.
LCK awarded EPCM contracts to inGauge Energy Pty Ltd and Prudentia Process Consulting Pty Ltd.
inGauge and Prudentia will handle the upstream and the downstream components of Stage 1 Commercial Development, respectively.
Phil Staveley, LCK’s Managing Director, said that the EPCM contracts for Stage 1 Commercial Development would allow the LCEP to progress following the company’s Petroleum Production License awarding on 25 November 2020.
“While our recently completed in-situ gasification (ISG) and urea production Pre-Feasibility Study highlighted the strong economic returns and strategic rationale for the development of a urea production facility at the LCEP, these contracts start to bring it to life,” Staveley added.
“With this, LCK moves closer to becoming a significant supplier of low-cost, domestically produced urea providing additional security to a critical product of the Australian agricultural sector.”
Commercial stages in place
LCK will develop its namesake project in parallel – with the first stage focusing on expanding gas production and earning revenue, while the second stage on large-scale gas and urea production.
As Australia’s most extensive onshore drilling and completions projects management company, inGauge will handle services for the development of initial gasification wells to provide feedstock syngas for a 5MW power plant.
Prudentia, a multi-discipline engineering and project delivery services provider, will manage the 5MW gas-fired power plant’s downstream activities – including technology selection, design development, project control tracking, commissioning support, among others.
LCK collaborated with both inGauge and Prudentia in previous drilling and engineering campaigns.
About the Leigh Creek Energy Project
The wholly-owned Leigh Creek Energy Project sits at the dormant Leigh Creek Coalfield in South Australia, just 550 km north of Adelaide.
Containing 1,153PJ of 2P gas reserves, including 301.2Mt of indicated and inferred coal resources, the LCEP will produce 1Mtpa of urea using ISG’s latest technologies.
In the long term, LCK predicts that the project will provide long-term growth and employment opportunities to nearby communities of the northern Flinders Ranges and South Australia.