Beach JV inks gas deal with Mid-West LNG
Beach Energy and Mitsui have signed a five-year gas supply agreement (GSA) with Mid-West LNG, a unit of Perth-based Clean Energy Fuels Australia, Beach said on June 29.
Under the GSA, which is expected to come into force next year, Beach and Mitsui's Waitsia joint venture will supply a base volume of approximately 2 terojoules/day of gas from the Xyris production facility, with an option to increase the base volume as CEFA's gas requirements grow in the future.
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CEFA is 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.
"This agreement with CEFA will enable the supply of lower GHG emission fuels to energy users in the Mid-West," Beach Energy managing director Matt 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 terajoules/day.”