Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has wrapped up a pre-feasibility study (PFS) for a Kimberley-based floating liquified natural gas (FLNG) plant solution with Transborders Energy.
Technically and economically feasible
This PFS forms part of the company’s continuing efforts to identify the most value-accretive development of its potentially large-scale 100% Buru-owned Rafael gas and condensate resource in the Canning Basin.
The company is pleased with the results – the PFS, conducted in collaboration with Transborders Energy and Technip (EPA:FTI) (OTC:TNHPF) Energies, demonstrates such a facility would be a technically, commercially and economically feasible option to commercialise Rafael.
This view is based on independently assessed potential recoverable volumes of more than one TCF (trillion cubic feet) of gas and more than 20 million barrels of condensate.
The study confirmed that a compact, regionally located, roughly 1.6 million tonnes per annum (MTPA) FLNG facility, in conjunction with onshore condensate and LPG processing, is an economically robust path for development of the Rafael 3C resource.
It could also offer a relatively lower cost and shorter time frame to development than alternative gas export options.
Commercialisation pathway
“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,” CEO Thomas Nador said.
Buru will continue to work with Transborders and its multi-project collaboration partners, which include Kyushu Electric Power, Mitsui O.S.K. Lines, Technip Energies, SBM Offshore and Add Energy (part of ABL Group ASA), to progress commercial discussions and to refine the cost and schedule parameters for the next phase of project definition.
Alongside the Transborders study, Buru is exploring a number of other pathways for the early commercialisation of a full range of Rafael resource sizes, including local LNG production for Kimberley energy requirements, and local value-adding gas conversion to products including methanol, ammonia and urea.
Buru Energy has also identified the potential for these developments to benefit from carbon capture and storage (CCS) solutions being developed by Buru’s Geovault subsidiary.
Conducting these studies in parallel with the ongoing appraisal of the Rafael resource will ensure a faster transition to front end engineering and design (FEED) following appraisal drilling in 2024, and a reduced delivery timeframe to first product sales from this potentially regionally significant project.
Partnership model
“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,” Nador continued.
“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.
“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.”