Beach Energy and Mitsui E&P Australia have signed a five-year gas supply agreement (GSA) with Mid-West LNG, a group company of Clean Energy Fuels Australia (CEFA).
Under the GSA, which is expected to commence during the second quarter of 2022, the Waitsia joint venture will supply a base volume of 2 terajoules a day (TJ/d) of gas from the Xyris production facility.
CEFA is a Perth-based company which provides, as part of its energy transition platform, integrated solutions developing small-scale LNG infrastructure assets for remote mining operations and communities within Australia.
CEFA, through Mid-West LNG, is in the process of building its first phase of an LNG Hub in Mount Magnet, which will process gas supplied under this GSA into LNG that will be trucked to CEFA’s customers.
Beach Energy managing director Matt Kay said that the agreement demonstrates the company’s commitment to providing affordable gas to the domestic market in Western Australia.
“This agreement with CEFA will enable the supply of lower GHG emission fuels to energy users in the MidWest,” Kay said.
“The Xyris Production Facility, which processes gas from Waitsia Stage 1, has recently undergone an expansion and is sustaining production above the planned 20 TJ per day. “This means more gas for Western Australian domestic customers and opens up opportunities to support local industry through GSAs such as this one.”
In January this year Mitsui E&P and Beach Energy have made a final investment decision (FID) on stage two of the Waitsia gas project in the onshore Perth Basin, Western Australia.
The 50:50 partners announced the milestone in late December after signing key commercial agreements with the North West Shelf joint venture, the Western Australian Government and the Australian Gas Infrastructure Group.
With the FID, Mitsui and Beach have committed initial funding for the 250 terajoule (TJ) per day stage two development, with full funding to be committed once certain conditions and commercial conditions have been satisfied.