Buru Energy and CEFA Forge Strategic Alliance to Unlock Rafael Gas Potential in Western Australia

Highlights

• Buru Energy Ltd (ASX:BRU) and Clean Energy Fuels Australia to co-develop the Rafael Gas Project in WA’s Canning Basin.
• Agreement aims to deliver locally sourced LNG to replace imported fuels and support regional energy security.
• CEFA to fund and operate midstream infrastructure while Buru focuses on upstream development and reserve certification.

Buru Energy Ltd (ASX:BRU) has entered into a Strategic Development Agreement (SDA) with Clean Energy Fuels Australia Pty Ltd (CEFA) to jointly develop the Rafael Gas Project located in the Canning Basin in Western Australia. This collaboration represents a major advancement for energy infrastructure in the region, offering the potential to provide a sustainable and domestic energy source for industries heavily reliant on long-haul trucked or imported fuels for power generation and mining operations.

The Rafael Gas Project stands as the only confirmed source of conventional gas and liquids located onshore in Western Australia north of the North West Shelf Project. The SDA aims to unlock a new supply chain of liquified natural gas (LNG) and condensates, providing a local alternative to diesel and reinforcing energy security in remote areas that are not connected to existing pipeline networks.

Buru Energy brings its upstream resource base and exploration capabilities to the table, while CEFA, a part of the Octa Group owned by global infrastructure fund I Squared Capital, contributes proven downstream operational expertise. This synergy is structured to facilitate the commercialisation of Rafael’s significant gas potential through an integrated development model.

CEFA will finance, construct, own, and operate a small-scale LNG plant with a capacity of up to 300 tonnes per day at the Rafael 1 wellsite. This plant will be complemented by supporting condensate infrastructure and will form part of CEFA’s broader strategy to establish virtual pipelines across regional Australia. The investment structure allows CEFA to recover its capital through long-term gas processing fees charged to Buru over an anticipated production life of approximately 20 years.

Buru will retain responsibility for the upstream development, including the construction and operation of production wells and facilities. Additionally, Buru will lead Native Title negotiations and oversee the environmental permitting process with the Western Australian State Government. These components are critical for progressing the project from its current exploratory phase into full-scale development and long-term production.

The partnership is designed to deliver competitive energy solutions and support the transition to cleaner fuels in the state’s northwest. By substituting imported diesel with locally sourced LNG, the project is expected to reduce both emissions and energy costs for remote and industrial users, particularly within the mining sector.

In preparation for commercial development, Buru is advancing plans for a recompletion and testing program of the Rafael 1 well in 2025, with the goal of obtaining independent certification of the project’s gas reserves. This certification is a key milestone required for CEFA’s final investment in the project and for locking in binding agreements between the two companies. Subject to successful testing and funding outcomes, a follow-up development well is anticipated to be drilled in 2026.

A final investment decision (FID) is expected by late 2025 or early 2026, contingent upon reserve certification and the completion of front-end engineering and environmental approvals. Should development proceed as scheduled, initial production and cashflow generation from the Rafael Gas Project are projected to begin in the second half of 2027.

The strategic alignment between Buru Energy Ltd (ASX:BRU) and CEFA underscores a broader shift towards decentralised, clean energy delivery systems in Australia’s remote regions. It also highlights the growing role of partnerships in bridging upstream resources with downstream infrastructure and financing to meet rising domestic energy demands. The Rafael Gas Project is positioned as a cornerstone asset in this evolving landscape, leveraging unique geological potential and commercial models tailored for off-grid energy users.