Strike wraps up initial engineering of WA gas plant
Sydney-listed Strike Energy has completed initial engineering with France’s Technip Energies for its 40 terajoules/day gas plant to be located in Western Australia, it said on April 20.
“In line with Strike’s gas acceleration strategy, Strike has completed initial engineering with Technip Energies for a low-cost, fast-to-market modular and expandable gas plant to be located on Strike’s Mid-West Low Carbon Manufacturing Precinct, with targeted commissioning via the 100% owned South Erregulla gas field in late 2024,” the company said.
Strike said it is continuing the engineering of the gas plant and has commenced the process of engaging with potential suppliers for the engineering, procurement and fabrication contract. It hopes to be in a position to contemplate a final investment decision for the South Erregulla gas field in the coming months.
The company has submitted its primary environmental approval for the gas field, plant and pipeline, the production licence application and the field management plan. It is targeting the commissioning of the first phase of the field’s development in late-2024.
The South Erregulla gas field development consists of three phases. Phase one involves the deployment of an initial 40 terajoules/d modular gas plant to support production from the existing independently certified 128 PJ of net 2P reserves.
Phase two involves the addition of expansion modules to take the field’s production to more than 80 terajoules/d post the inclusion of the resulting reserves from the planned appraisal drilling of the 271 petajoules of net 2C resources.
Phase three will see the deployment of an additional CO₂ purification and compression module to support the development of the precinct’s carbon capture and sequestration, with the integration of the wind and solar power resources.
“Preparing South Erregulla for its final investment decision will lock in Strike’s second source of gas production as part of its gas acceleration objectives. This innovative development plan will allow Strike to proceed with a greater degree of speed and certainty than it would if it proceeded with a traditional large-scale, stick-built piece of infrastructure," Strike CEO, Stuart Nicholls, said.
"As gas prices rise in the state, the proposed Phase 1, 40 terajoules/d development at Strike’s 100% owned South Erregulla gas field has the potential to generate a substantial cash flow for the company once online," he added.
Strike launched its gas acceleration strategy last month post-receipt of A$136mn ($92mn) in proceeds from the sale of its Warrego Energy shares. The company is targeting up to four sources of gas production to come online by the end of 2025, commencing with Walyering.