Clean Energy Fuels Australia secures gas for WA LNG hub

Perth-based Clean Energy Fuels Australia has signed a five-year gas supply deal for its LNG production hub in Western Australia.

Mid-West LNG, a unit of CEFA and the developer of the small-scale LNG facility near the town of Mount Magnet, signed the deal with Beach Energy and Mitsui E&P Australia.

Under the deal, Mitsui and Beach will supply a base volume of about 2 TJ per day or 0.7 PJ per year of gas from the Xyris production facility, part of the first phase of their Waitsia gas project in Western Australia.

The supplies would start in the second quarter of fiscal 2022, Beach said in a statement on Tuesday.

In addition, there is an option to increase the base volume as CEFA’s gas requirements grow in the future, it said.

To remind, Mitsui and Beach have in December made a final investment decision on the second stage of their Waitsia gas project.

First LNG production expected this year

On the other side, CEFA’s new plant will form part of its Mid-West LNG hub. US-based infrastructure fund I Squared Capital owns CEFA.

CEFA’s Mid-West LNG is currently building the first phase of the Mount Magnet LNG facility, located about 600km north of Wickepin, and the new gas deal supports this phase.

The hub will supply LNG as fuel to generate electricity for mines and remote communities across the region, providing an alternative to diesel with reduced energy costs but also lower emissions, CEFA said.

CEFA plans to build the hub in stages including the first liquefaction train, customer storage, but also regasification facilities.

It will have a production capacity of up to 100,000 tonnes per annum of LNG, with first production scheduled for the third quarter of this year, according to CEFA.

The firm also recently singed a 15-year supply deal with WA Kaolin.

Under the deal, Mid-West LNG will supply liquefied natural gas to WA Kaolin’s Wickepin Kaolin project, located 220km south-east of Perth, which contains high-grade premium kaolinised granite.

WA Kaolin will be the second customer supplied from the Mid-West LNG hub as the firm previously signed a deal with Silver Lakes Resources’ Deflector gold mine.

Most Popular

Financing secured for Manzanillo LNG-to-power project

Manzanillo Gas & Power has secured financing for its Manzanillo LNG-to-power project in the Dominican Republic, which includes a floating storage and regasification unit (FSRU).

ALNG expects to enter LNG trading by year-end

Norway’s ALNG, the owner of two TFDE LNG vessels, expects to enter LNG trading with its first transaction by the end of this year, according to interim CEO Jens-Julius Ramdahl Nygaard.

ExxonMobil dishes out $1.1 billion in Rovuma LNG contracts

US energy giant ExxonMobil and its partners in the planned Rovuma LNG project in Mozambique have awarded $1.1 billion in pre-investment contracts for long-lead upstream equipment.

More News Like This

Petrovietnam, Mitsui talk LNG cooperation

State-owned Petrovietnam and Japanese trading house Mitsui & Co are looking to expand their cooperation, including in liquefied natural gas (LNG).

Evol LNG secures new contracts

Australian small-scale LNG player Evol LNG, a part of OCTA, has signed supply contracts with Rox Resources and Brightstar Resources.

Gas Malaysia gets OK for FSRU terminal

Gas Malaysia said it had received a letter to proceed from the Energy Commission of Malaysia for its planned FSRU-based LNG regasification terminal in Yan, Kedah.

Santos, Beach greenlight MCO project

Australian LNG player Santos and its joint venture partner Beach Energy have taken a final investment decision to proceed with the Moomba Central Optimisation (MCO) project in the Cooper Basin, South Australia.