Arafura hits the gas on rare earths

Arafura Rare Earths and New Zealand Oil & Gas (NZOG) have secured a significant gas supply arrangement.

Arafura


The arrangement was reached between NZOG, who holds a portion of the Mereenie oil and gas field in the Northern Territory under a joint venture agreement, and Arafura subsidiary Arafura Nolans Project.

The neighboring Nolans project of Arafura is predicted to become a key supplier of vital minerals and is considered a globally significant rare earth deposit.

Under the terms of the deal, NZOG will provide Nolans with up to 4.8 petajoules (PJ) of gas over the following five years.

According to Darryl Cuzzubbo, managing director of Arafura, “ensuring access to local natural gas is a positive step in the development of this major project, which will see rare earth minerals from the Northern Territory delivered to customers worldwide in support of energy transition initiatives.”
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Up to 27.4PJ of gas will be provided to Arafura by combining the gas delivered under the agreement with gas from Central Petroleum, Macquarie Mereenie, and Cue Energy Resources, other Mereenie field joint venturers.

6.85PJ of gas will be supplied by Central Petroleum, in addition to 2.06PJ from Cue Energy and 13.7PJ from Macquarie Mereenie.

The three-year agreement will begin in 2026, and it can be extended for a further two years if gas supplies remain available.

NZOG Chief Executive Officer Andrew Jefferies stated, “The Nolans Rare Earth Minerals Project will deliver critical minerals vital for the permanent magnets in wind turbines and EV motors – the marvellous machines that are the transition.”

The Australian Federal and Northern Territory governments acknowledge the criticality of these materials, and we are honored to be leading the charge alongside our indigenous Northern Territory energy supply to make it happen.

“Transition is a three-letter word: gas.”

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