Cue Energy has executed a Gas Supply Agreement (GSA) with Arafura Rare Earths’ subsidiary, Arafura Nolans Project.
“Cue is pleased to be able to supply gas to the Nolans project to support the development of critical rare earths,” Cue chief executive officer Matthew Boyall said.
“This agreement underscores the important role that gas has to play in the energy transition in Australia.”
Under the agreement, Cue will supply up to 2.06 petajoules (PJ), which will be aggregated with gas from other Mereenie field joint venturers, Central Petroleum, Macquarie Mereenie and New Zealand Oil & Gas, to supply up to 27.4 PJ of gas to Arafura.
“The Nolans rare earth minerals project will deliver critical minerals vital for the permanent magnets in wind turbines and EV motors – the marvellous machines that are the transition,” New Zealand Oil & Gas chief executive officer Andrew Jefferies said.
“The criticality of these materials is recognised by the Australian Federal and Northen Territory governments, and we are proud to be playing a key role in making it happen with our homegrown Northern Territory energy supply.
“Gas is a three-letter word for transition.”
The GSA will commence in 2026 for a three-year term, with a further two year extension subject to gas volumes being available.
The GSA is for firm gas supply with take-or-pay provisions and a price that escalates with inflation.
The GSA is conditional on various conditions precedent with respect to the Arafura Nolans project.