Mid-West LNG, a unit of Clean Energy Fuels Australia, has signed a five-year gas supply agreement (GSA) with Beach Energy and Mitsui E&P Australia (Waitsia JV).
Under the GSA, the Waitsia joint venture partners Beach Energy and Mitsui E&P will supply gas from the Xyris production facility to Mid-West’s small-scale LNG facility near the town of Mount Magnet , Western Australia.
The Xyris facility is a part of Waitsia project stage one phase, completed back in 2016.
The base volume of the agreement is about 2 TJ per day or 0.7 PJ per year of gas. The agreement also left an option to increase the base volume open, as Clean Energy Fuels Australia’s gas requirements might grow in the future.
Through Mid-West LNG, Clean Energy Fuels Australia (CEFA) is in the process of building its first phase of an LNG hub in Mount Magnet. The hub will process gas supplied under this agreement into LNG that will be trucked to CEFA’s customers.
Beach Energy managing director Matt Kay thinks that “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,” he stressed.