CEFA signs 5-year contract with Beach Energy and Mitsui E&P Australia

Clean Energy Fuels Australia (CEFA) has signed a five-year gas supply agreement (GSA) with Beach Energy and Mitsui E&P Australia (Waitsia Joint Venture) for the supply of Waitsia gas for Phase 1 of its Mid-West LNG Hub located at Mount Magnet in regional WA.

The Mid-West LNG Hub will process gas supplied under the GSA into liquefied natural gas (LNG) which will be trucked to CEFA customers in the Mid-West region. Phase 1 of the Mid-West LNG Hub is under construction with first LNG deliveries expected to commence during the third quarter of 2021.

Under the GSA, which is expected to commence in the second quarter of FY22, the Waitsia Joint Venture will supply a base volume of approximately 2TJ per day (~0.7PJ per year) of gas (gross) from the Xyris production facility, with an option to increase the base volume as CEFA’s gas requirements grow in the future.

Beach Energy Managing Director, Matt Kay, said that the agreement demonstrated Beach’s commitment to providing affordable gas to the domestic market in Western Australia.

“This agreement with CEFA will enable the supply of lower GHG emission fuels to energy users in the Mid-West.”

“The Xyris production facility, which processes gas from Waitsia Stage 1, has recently undergone an expansion and is sustaining production above the planned 20 TJ per day. This means more gas for Western Australian domestic customers and opens up opportunities to support local industry through GSAs such as this one.”

The Mid-West LNG Hub is the first building block of the Energy Transition Platform (ETP) being developed by CEFA with the backing of global infrastructure fund I Squared Capital (ISQ).