More affordable gas in the Mid West for domestic market

Staff ReporterMidwest Times
The Xyris Production Facility near Dongara.
Camera IconThe Xyris Production Facility near Dongara. Credit: Beach Energy/Picture: Beach Energy

Cheaper and lower emissions fuels are set to be produced in and supplied to customers in the Mid West, with the company building a new processing plant in Mount Magnet and signing a five-year deal to convert more gas at its Dongara operation.

Beach Energy and Mitsui E&P Australia have signed a five-year gas supply agreement with Mid-West LNG Pty Ltd, a group company of Clean Energy Fuels Australia Pty Ltd, to process more gas from Waitsia Stage One at its Xyris Production Facility near Dongara.

CEFA and the Mid-West group of companies are fully owned subsidiaries of I Squared Capital, a US$24 ($31b) billion infrastructure fund and are building its first phase of an LNG Hub in Mount Magnet, which will process gas supplied under the agreement into LNG that will be trucked to CEFA’s customers.

The agreement with Perth-based CEFA, which develops small-scale LNG infrastructure assets for remote mining operations and communities within Australia as part of its energy transition platform, is expected to start during the second quarter of the 2021/22 financial year.

Beach Energy managing director Matt Kay said that the agreement showed the company’s commitment to providing affordable gas to the WA’s 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,” Mr Kay said.

“The Xyris Production Facility, which processes gas from Waitsia Stage One, 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.”

Beach’s Perth Basin operations consist of the Waitsia project and Beharra Springs (operated) projects, and is working with its joint venture partner Mitsui E&P Australia to progress the Waitsia Stage Two gas project, with first gas expected in 2023.

Kerry Stokes, chairman of Seven West Media — publisher of the Midwest Times — holds a 28.5 per cent stake in Beach Energy through Seven Group Holdings.

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