Buru Energy Extends Gas Supply Agreement With Alcoa

Buru Energy Limited and Alcoa have agreed to a further two year extension of the Gas Supply Agreement (GSA). Buru now has until 1 January 2015 to establish sufficient reserves to supply gas to Alcoa under the GSA.

The GSA provides for Buru to deliver up to 500 PJ of gas to Alcoa from discoveries made in the Canning Superbasin.

In the event Buru does not prove up sufficient reserves to supply gas under the GSA, the repayment period under the GSA has also been extended by two years, with the first of the three equal annual repayment tranches (if required) not being due until 31 December 2015.

“The agreement  can underpin the construction of  the Great Northern Pipeline, facilitating the timely and effective development of a domestic gas project to deliver gas from the Canning Superbasin to the South West domestic gas market,” Buru’s Executive Director, Eric Streitberg said.