“The relationship is five years in the making, with Clough having previously signed a cooperation agreement with small-scale LNG plant provider, Salof, which was acquired by GE in 2013,” both parties said in a joint release.

“The collaboration between GE and Clough will ultimately help build a virtual pipeline network for LNG fuelling in the region where physical pipeline infrastructure is scarce, particularly to remote areas for power generation and mining operations.”

The alliance aims to provide an “end-to-end LNG fuel solution that will convert natural gas into LNG and deliver it to the final point of use, including all the associated infrastructure, storage and transportation”

The JV consequently aims to provide a reliable, diesel-replacing LNG fuel solution.

“The service offers a collaborative LNG network development model which is underpinned by GE’s small-scale LNG technology and Clough’s extensive LNG process engineering, modular construction and asset management capability,” the companies said.

GE has more than 25 small-scale LNG plants in operation and under development.

Clough managing director Kevin Gallagher said the solution will reduce energy costs and carbon emissions for clients.

“Replacing diesel with LNG fuel for transport and power will provide sustainable economic and environmental benefits, not only for clients, but for all of Australia,” he said.

“LNG fuel is cost-effective, clean and safe, and makes use of abundant Australian gas resources.

Clough and our partner GE aim to become the enabler for clients to convert from imported diesel to domestically supplied gas.”

GE Oil & Gas acting regional manager Ross Ismail said it was cost-efficient to use LNG, a cleaner burning fuel for transportation, fleet management, marine and other industrial applications in Australia.

“Together, with Clough, we will have the ability to bring a complete, fully-integrated solution to our customers in the small-scale LNG space,” he said.

The JV flagged that clients could potentially save up to 30% in energy costs and 20% in greenhouse gas emissions by switching from diesel to fuel – partly based on assumptions of cheaper oil and gas prices in the future.