Lucapa Diamond, through its wholly owned subsidiary Australian Natural Diamonds, has signed heads of agreement with Armour Energy for gas supply to its Merlin Diamond Project in the Northern Territory.
Armour said the agreement contemplates the sale of gas produced from the Glyde Field from production start-up for 14 years from mid-2025 to the end of 2039 providing fuel to support the development of the project, which is currently undergoing a feasibility study.
A minimum of 7 PJ of gross gas would be supplied over the contract term.
“The prospect of the availability of gas from a source less than 20 km from the Merlin Diamond Project rather than diesel trucked from Darwin, potentially as part of a solar gas hybrid power solution, is of significant interest to Lucapa from both an environmental and project economics point of view,” said Lucapa managing director Stephen Wetherall.
Armour chief executive Christian Lange said the agreement with Lucapa represents a significant opportunity to further appraise, develop and commercialise the Glyde gas discovery in the Northern Territory.
“The agreement underpins the accelerated pathway to commercialisation of this shallow, conventional gas asset and reinforces the exciting conventional and unconventional hydrocarbon potential of the McArthur Basin in the Northern Territory and our ability to provide this valuable resource to the domestic market and represent first production from the Basin,” he said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
Armour said the agreement contemplates the sale of gas produced from the Glyde Field from production start-up for 14 years from mid-2025 to the end of 2039 providing fuel to support the development of the project, which is currently undergoing a feasibility study.
A minimum of 7 PJ of gross gas would be supplied over the contract term.
“The prospect of the availability of gas from a source less than 20 km from the Merlin Diamond Project rather than diesel trucked from Darwin, potentially as part of a solar gas hybrid power solution, is of significant interest to Lucapa from both an environmental and project economics point of view,” said Lucapa managing director Stephen Wetherall.
Armour chief executive Christian Lange said the agreement with Lucapa represents a significant opportunity to further appraise, develop and commercialise the Glyde gas discovery in the Northern Territory.
“The agreement underpins the accelerated pathway to commercialisation of this shallow, conventional gas asset and reinforces the exciting conventional and unconventional hydrocarbon potential of the McArthur Basin in the Northern Territory and our ability to provide this valuable resource to the domestic market and represent first production from the Basin,” he said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
