Leigh Creek awards key contracts

STAGE one engineering procurement contract management contracts have been awarded for Leigh Creek Energy’s coal-to-gas project in South Australia.
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The drilling services contract has been awarded to inGauge Energy and the engineering and design contract awarded to Prudentia Process Consulting.

The drilling services contract has been awarded to inGauge Energy and the engineering and design contract awarded to Prudentia Process Consulting.

Leigh Creek managing director Phil Staveley said following the pre-feasibility study and award of the Petroleum Production Licence in the December 2020 quarter, the company started the planning and execution of Stage one of the Leigh Creek Energy project commercial development.

"This included awarding EPCM contracts, recruitment of key staff and ongoing negotiations for procurement of long lead infrastructure needed for drilling and power production," he said.

"It's exciting to be planning for operational work to start in the near future. Stage one commercial development of the LCEP, which incorporates drilling several new gasifiers and installing a small-scale power plant, will move Leigh Creek Energy closer to our primary goal of becoming Australia's first fully integrated urea producer with an initial capacity of 1 million tonnes per annum."

Stage one comprises drilling further wells, generating syngas and installing a small power plant to use the gas.

Once the stage one wells have been drilled, the gasifiers will be initiated and developed to produce syngas.

The scope of inGauge's engagement includes investigating options for well design and integrity measures based on the Leigh Creek gasifiers design; managing approval requirements in conjunction with the company; procurement of drilling contractors; and on-site drill operations management.

The scope of Prudentia's engagement includes technology selection, engineering and design development, development of project documents, specifications, and drawings for use with procurement and construction activities.

It also includes development and tracking of project controls including schedule and budget; development of scope of work packages and management of procurement activities; and construction and commissioning support.

"Leigh Creek has an established relationship with inGauge and Prudentia, as both companies worked on the 2018 precommercial demonstration project," the company said.