Buru Energy has signed a strategic development agreement with Clean Energy Fuels Australia (CEFA) to advance the Rafael gas project in Western Australia’s Canning Basin.
According to Buru, this agreement marks a key step in its transition from exploration to production and outlines the joint development of a small-scale liquefied natural gas (LNG) operation.
The Rafael project is located approximately 150km east of Broome and 85km south of Derby.
Under the terms of the deal, CEFA will fund, construct, own and operate an LNG plant and condensate handling infrastructure at the Rafael 1 well site.
The facility is expected to produce up to 300 tonnes of LNG per day, targeting supply to remote mining and power generation customers in the state’s northwest.
Buru, which retains full ownership of the upstream asset, will manage the gas production side of the project.
The company is currently progressing with environmental approvals, Native Title negotiations, and plans to re-enter and test the Rafael 1 well in the third quarter of 2025. A second well, Rafael B, is scheduled for drilling in 2026.
CEFA’s investment will be recouped through long-term gas processing fees paid by Buru, structured over a 20-year production life.
The parties aim to finalise binding agreements by late 2025, with a final investment decision expected soon after.
First gas is targeted for the second half of 2027.
Buru Chief Executive Officer Thomas Nador described the agreement as “a watershed moment” that underscores the company’s commitment to developing a local energy solution for the region.
Rafael is currently the only confirmed source of conventional gas and condensate in onshore Western Australia north of the North West Shelf, offering an alternative to imported diesel for isolated users.
According to Buru, the project has potential to help reduce energy costs and improve supply security for industries not connected to pipeline infrastructure.
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