Managing director Chris Laurie said the LNG plant liquefaction process had been commissioned and was operational.

But he added that further process tuning and adjustments were required to improve efficiency and ramp the plant up to full capacity.

“Achieving LNG production is a major milestone for the project and for Energy Developments,” he said.

“Equally important is the fact that we have successfully operated generators at the Broome power station on LNG produced at our Karratha LNG Plant.

“Notwithstanding these achievements we remain focussed on completing system tuning and process adjustments required at the LNG Plant and on fully testing the LNG transport and logistics systems.”

LNG from the plant is being transported in the company’s purpose-built road tankers to the Broome fuel storage facility, which has been commissioned along with the pipeline to the power station.

At the 34MW Broome Power Station, the generators have been tuned and operated at full load.

“When adequate inventory of LNG is accrued and final checks completed, the power station will begin progressively taking town load and undergo the tests required under the power purchase agreement with Horizon Power,” Energy Developments said.

“Load transfer is schedule to commence in late October.”

LNG will be delivered to the remaining power stations at Derby (15MW), Fitzroy Crossing (6MW) and Halls Creek (5MW) as the production rate and inventory increases.

Operation of these power stations is due to begin in November and December as previously forecast.

Laurie also noted that Looma power station has supplied electrical power to Horizon Power for the towns of Camballin and Looma without interruption since it commenced operation in June 2007.

He reiterated that the final capital cost for the plant and power stations, which comprise the West Kimberley Power Project, remains within the $310-320 million range.

This is double the $150-185 million outlined in the original budget last year.