Buru Energy Signs Gas Supply Deal With Western Australia

Buru Energy has entered into an agreement with the government of Western Australian to provide long term tenure over the company’s most prospective acreage and facilitate the development of a domestic gas project and pipeline and, in due course, an LNG development, once sufficient gas reserves are identified.

Buru and its joint venture partner Mitsubishi Corporation (MC) will have the option of exploration and development of exploration permits EP 371, 391, 428, 431 and 436 for 25 years, with an option to extend for a further 25 years.

During the term of the agreement, Buru and MC have committed to the continued exploration, appraisal and, if technically viable, development of the gas resources of the Permits with the objective of delivering gas into the Western Australian domestic gas market.  The deal is targeting the delivery of at least 1,500PJ of gas into the domestic market over 25 years.  Buru and MC are required to submit a proposal for the development of a domestic gas project and pipeline by 30 June 2016.

The agreement also provides a framework for the development of a project to provide gas to an LNG facility  in the Pilbara once the domestic gas pipeline and project have been approved.