Beach Energy and ITOCHU have identified potential South Australian sites for a proposed mid-scale liquefied natural gas (LNG) facility.
A memorandum of understanding between the companies is underway for the project.
The facility will receive supplies from Beach's gas portfolio, which includes conventional and unconventional gas resources.
The proposed LNG facility and offloading terminal will need 60PJ of gas and will a capacity of one million tonnes per year with an investment of A$1bn ($980m).
LNG from this facility will be exported into Far East markets such as Japan.