Buru Energy (ASX: BRU) has entered into a strategic development agreement with Clean Energy Fuels Australia (CEFA) to co-develop the Rafael gas/condensate project, located east of Broome. This project aims to replace long-haul fuel currently used for power generation and mining in the region with locally-sourced LNG. CEFA specializes in integrated LNG solutions for remote industries and communities. The agreement combines Buru’s upstream resources with CEFA’s downstream capabilities and financial support within the Western Australian LNG market.
Buru and CEFA have outlined a business model for binding agreements, expected in late 2025. CEFA will finance and operate an LNG plant with a capacity of up to 300 tonnes per day on the Rafael 1 well site. Buru will manage upstream elements, including well operation, Native Title negotiations, and environmental approvals. Buru is exploring funding options for its 2025 Rafael 1 well recompletion and testing program, crucial for reserves certification. The company anticipates a final investment decision by late 2025 or early 2026, with cash flow commencing in the second half of 2027.
