Buru Energy welcomes updated WA domestic gas policy

Buru Energy has welcomed the updated Western Australian domestic gas policy announced by the state government on August 17. The policy's confirmation of potential onshore gas export from the Canning basin, with a 15% reservation for the domestic market, marks a significant stride forward, it said.

This policy, unveiled on August 16, notably prohibits the export of gas from forthcoming projects in the onshore Perth basin. In accordance with this policy, developers engaged in gas projects within the Canning basin are mandated to allocate 15% of their export volumes to the domestic market.

Buru's 100% owned and operated Rafael conventional gas and condensate discovery is located within the Canning basin.

“Buru welcomes the added certainty the updated domestic gas policy brings to its Rafael gas and condensate development,” Buru’s CEO Thomas Nador said. “The Canning Basin is not connected to an existing pipeline network. By confirming the project is able to export gas in the future provides Buru with strategic optionality to develop Rafael, and significantly enhances the attractiveness of the project to potential development partners. This is positive for the development of Rafael and the Canning Basin, positive for the region and positive for our shareholders.”

Phase one of the Rafael project is a Kimberley based hybrid gas to power and renewables project designed to meet the current and growing energy demands of the region. This domestic focused project is based on the already defined 1C volume estimate of the Rafael contingent resource and is designed to meet the domestic market reservation threshold under the policy, Buru said.

Work on Phase one engineering is proceeding, the accompany added, with final investment decision targeted for mid-2025. Phase two concept selection for an export focused project will follow resource appraisal in 2024.