Beach Energy and Mitsui E&P Australia have signed a five-year gas supply agreement with Mid-West LNG, a group company of Clean Energy Fuels Australia.
Under the GSA, which is expected to commence during Q2 FY22, the Waitsia Joint Venture will supply a base volume of approximately 2 TJ per day (~0.7 PJ per annum) of gas (gross) from the Xyris Production Facility (Waitsia Stage 1), with an option to increase the base volume as CEFA’s gas requirements grow in the future.
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 and the Mid-West group of companies are fully-owned subsidiaries of I Squared Capital, a circa US$24 billion infrastructure fund with significant experience and assets in the energy sector.
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 Beach’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,” Mr 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.”