Central Petroleum (ASX:CTP) announced that the gas supply agreement with Arafura Rare Earths (ASX:ARU) for the Nolans Project has lapsed.
The agreement, including related contracts with other Mereenie joint venture partners, was subject to a condition precedent—Arafura's board approving a final investment decision by March 31—which was not met.
The partners had already granted a nine-month extension to facilitate the FID.
With the agreement now terminated, Central and its joint venture partners will re-market the firm gas volumes, scheduled for delivery from Jan. 1 2028, to other potential customers across the Northern Territory and East Coast markets.
Central Managing Director Leon Devaney expressed disappointment over the lapsed agreement but emphasized the strong demand for a firm and reliable gas supply.
"Whilst we are disappointed Arafura was unable to achieve FID during the window provided, the NT and broader east coast gas markets desperately need long-term gas that can be supplied on a firm and reliable basis," Devaney said.