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Town considers LNG plan

Town considers LNG plan

Cost of living and carbon emissions could plummet if a new $250 million liquefied natural gas production facility is given the green light by the Town of Port Hedland.

Mobile LNG managing director Andrew White said the construction of the plant would create up to 300 jobs for the local community and around 100 permanent positions once production begins.

Mr White said if LNG was substituted for diesel as a fuel for heavy freight then the cost-saving flow-on effect would benefit everyone.

"For a standard freight courier organisation not getting the benefit of a diesel fuel tax rebate you could be looking in the order of a 40 per cent reduction in fuel costs," he said.

"It has 25 per cent less CO2, no particulates, virtually zero nitrous and oxides … (and) the maintenance cycles on plant and equipment are dramatically extended."

The LNG would be produced with offshore WA gas from the pipeline which connects Karratha to Port Hedland.

The Town is considering two sites for the facility, the Boodarie Industrial Estate and Lumsden Point, with development expected to kick off in 2015.

Mr White has been touring the region to lay the groundwork for his plans by consulting with the community and key stakeholders.

"We're a mid-stream energy company focussed on using LNG in the domestic market as an alternate fuel source," he said.

"(Currently) we're importing something like $43 billion of petroleum products into the country and exporting all of our LNG, which doesn't make sense."

Curtin University associate professor Volker Rehbock said the proposal was a "bold one" but thought some buyers might be put off by the lack of infrastructure and initial cost.

"It is obviously possible to run heavy vehicles on the stuff; the question would be what the range is and how often you have to refuel," he said.

In the US, where LNG use is much more prevalent, the cost of purchasing a truck that can run on the gas is around USD$40,000 more expensive than its diesel counterpart.

However, Mr White suggested government incentives and financial support from MLNG could help Pilbara residents make the transition.