Arafura Rare Earths (ASX:ARU) said that the condition precedent date for its gas supply agreement with the Mereenie Field joint venture has lapsed and will not be extended, according to a Monday filing with the Australian bourse.

The deadline of March 31 was set for the completion of certain conditions under the agreement, key to securing natural gas supplies for Arafura's Nolans Project, the filing said.

The company's unit Arafura Nolans Project signed agreements with the Mereenie JV partners, including Central Petroleum (ASX:CTP), Cue Energy Resources (ASX:CUE), Macquarie Group's (ASX:MQG) unit Macquarie Mereenie, Horizon Oil (ASX:HZN), and Echelon Resources (ASX:ECH).

Under the agreement, the partners will supply up to 27.4 petajoules of natural gas for the company's Nolans Project in the Northern Territory for three years.

Arafura Nolans Project has now signed a non-binding letter of intent with Tamboran Resources (ASX:TBN) to supply 18 to 25 terajoules per day of natural gas for the project for up to 10 years, pending further negotiations and regulatory approvals.