SINGAPORE (Reuters) - Woodside Petroleum said on Friday its Pluto liquefied natural gas (LNG) project has opened a new LNG truck loading facility as it looks to develop the domestic LNG market for remote power generation and transport fuels.
The facility, located in Karratha, Western Australia, will initially be able to deliver seven LNG truck loadings a day, with each one transporting the equivalent of more than 80,000 litres (21,000 gallons) of diesel, Woodside said in a statement.
Capacity can be doubled by moving to 24-hour operations, and further expanded if needed to meet potential market demand, the company said.
The Australian oil and gas company's initial focus will be to supply trucked LNG to mining operations and communities in Western Australia for power generation and also to supply coastal marine vessels.
In the longer term, LNG from the truck loading facility could support the transition towards cleaner fuel for trucks and trains in the region's heavy transport sector, Woodside said.
It added that it is also planning to develop infrastructure for supplying LNG to the international shipping industry, particularly iron ore carriers on the busy trade route from Pilbara to Asia.
Woodside's Chief Operations Officer Meg O'Neill said in the statement that the Pilbara region in western Australia is an ideal hub for an LNG fuels market, with processing facilities being close to large-scale mining operations and port infrastructure.
"Around three billion litres of diesel are imported into the Pilbara every year, mainly for the mining industry," O'Neill said. "In addition, the ships exporting iron ore to international markets from the Pilbara consume approximately five billion litres of heavy fuel oil annually."
(Reporting by Jessica Jaganathan; editing by Christian Schmollinger)
