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.

- Advertisements -

Most Popular

Spark: spot LNG shipping rates climb to almost $200,000 per day

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet continued to rise this week as the...

Chevron: strike ends at Gorgon and Wheatstone LNG terminals

Unions representing Chevron's workers at the Gorgon and Wheatstone LNG export terminals in Western Australia have on Friday decided...

Japan’s MOL orders more LNG-powered car carriers

Japan’s shipping giant MOL has ordered two more LNG-powered car carriers at compatriot Nihon Shipyard. A spokesperson for MOL confirmed...

More News Like This

Australia’s Tamboran inks deal for small LNG facility

Australian firm Tamboran has entered into a framework deal with the Clean Energy Fuels Australia (CEFA) group of companies...

Jera inks ammonia deal with Mitsui for Hekinan power plant

Japan’s LNG buyer and power firm Jera will buy ammonia from compatriot trading house Mitsui & Co to supply...

Australia’s Beach Energy flags Waitsia delay

Australia’s Beach Energy said on Thursday that the second stage of the Waitsia gas project in Western Australia will...

Japan’s Mitsui buys 92 percent in US gas asset

Japanese trading house Mitsui & Co said it had purchased a 92 percent stake in an unconventional gas asset...