PERTH (miningweekly.com) – ASX-listed Buru Energy has demonstrated that a floating liquefied natural gas (FLNG) facility is a viable option for its Rafael gas and condensate resource in the Canning basin.
Buru told shareholders on Tuesday that this potential solution, involving LNG export via a localised offshore facility and onshore condensate and liquefied petroleum gas (LPG) separation, was chosen to complement other commercialisation options for Rafael gas and condensate, which continue to be developed in parallel by Buru and third-party engineering contractors to ensure rapid progression of development on a selected concept following the multi-stage Rafael resource appraisal programme starting in 2023.
These parallel studies are being developed to a similar level of definition as the FLNG study and are due to be completed in the second quarter of 2023.
The FLNG concept consists of a permanently moored, shallow water depth, compact, floating LNG facility with a liquefaction capacity of around 1.6-million tonnes of LNG a year, connected via an offshore/onshore pipeline to a small footprint onshore condensate stabilisation, LPG separation and gas conditioning plant. The Rafael field development will require a limited number of conventional wells with connecting flowlines.
“Following on from Buru’s acquisition of Origin Energy’s Canning Basin joint venture interests, announced less than two months ago, that gave it 100% ownership of the regionally significant Rafael resource, the completion of this study is a significant step forward in the commercialisation pathway for Rafael,” said Buru CEO Thomas Nador.
“The value of this study extends beyond affirming technical and economic feasibility for an FLNG option for the 3C volumes of the Rafael resource, it is a potential solution and partnership model that integrates the full LNG value chain via highly credible energy industry participants from LNG buyers, shippers, project delivery specialists and investors all working together to bring gas resource developments like Rafael to reality.
“In combination with onshore condensate and LPG processing, the development concept is compelling, and work will continue to further refine the concept and progress commercial discussions. In addition to the work on FLNG, Buru is also examining and screening other development options that cater for various Rafael resource volume scenarios, to ensure the company can move expeditiously on a selected concept once appraisal outcomes are confirmed.
“These include local Kimberley-based power generation, smaller-scale LNG production, downstream petrochemical processing projects and the potential to process Rafael gas for LNG export via the North West Shelf facilities. This work will ensure that there is a commercially attractive monetisation pathway for Rafael gas and condensate across the full range of contingent resource volumes,” said Nador.
“In parallel with this commercialisation study work, Buru is on track to acquire the Rafael 3D seismic survey during this year’s operating season and is targeting appraisal drilling in 2024 to fully inform the development concept selection for Rafael.”