Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has progressed the development of its Rafael gas condensate resource in the Canning Basin of Western Australia, awarding a pre-Front End Engineering Design (FEED) study to global professional services company GHD Pty Ltd for its phase one development.
GHD will deliver concept select level engineering for the first phase of the Rafael development, enabling the project’s progression to FEED in the second half of the 2024 calendar year.
The award to GHD follows confirmation in August that Buru was pursuing a two-phase development strategy to commercialise its 100%-owned Rafael discovery – the first proven significant conventional gas and condensate field in the Canning Basin.
50% renewable energy supply
The phase one Rafael development concept consists of a small footprint, Kimberley-based hybrid gas to power and renewables project. The scalable liquified natural gas (LNG) project will be complemented by 50% renewable energy supply from local and regional solar and battery storage.
It’s expected that pre-FEED engineering for this first phase development will be completed in the first half of next year, enabling the progression of the project to FEED early in the second half of the year. A final investment decision is then expected in the second half of 2025, followed by first production in the latter half of 2027.
Buru CEO Thomas Nador said: “We are very pleased to be partnering with GHD on this critical scope of work to progress the Rafael phase one development. The work over the next several months will enable Buru to define the phase one Rafael development to a level of maturity that will enable it to proceed to FEED next year for this potentially transformative energy project in the Kimberley. We are demonstrating that Buru is delivering on its plans to generate benefits to its shareholders, Traditional Owners, the government and Kimberley communities.”
Since acquiring Origin Energy’s Canning Basin joint venture interests in February 2023, Buru has been steadily building the value of the Rafael conventional gas and condensate discovery and the other Canning Basin assets. It has completed a series of feasibility studies for the full range of Rafael contingent resources and confirmed a phased project development strategy, while securing government approval for a Declaration of Location for the Rafael discovery.
Buru notes that phase one development of Rafael is designed to meet the forecast energy demands of the Kimberley for decades, and it has potential to reduce the carbon intensity of the energy system in the Kimberley by over 60%. The GHD pre-FEED study will provide the engineering framework to quantify and confirm the potential of the phase one project.
Phase 1 development concept
Looking ahead to Phase 2 development
Buru says that the timing of concept selection and pre-FEED engineering for a larger Rafael phase two development will be informed by appraisal drilling, planned for the second half of 2024, and will be based on mid to high resource volume estimates of Rafael contingent resources. These development concepts include ammonia, methanol or LNG export, complemented by carbon capture and storage.
Advisor appointed to assist in strategic partner selection
Today's announcement follows news last week that Buru has engaged independent corporate advisor Miro Capital as an adviser to assist in identifying strategic partners for its Rafael gas and condensate resource and other Canning Basin interests in WA.
The partnership will see Miro working closely with senior executives of Buru to conduct a structured selection process aimed at identifying strategic partners for the company's assets in the Canning Basin.
Read more on Proactive Investors AU
