• Natural Gas News

    Western Australia supports Strike’s gas acceleration strategy


The company's gas acceleration strategy has been awarded lead agency service by the government of Western Australia.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Political, News By Country, Australia

Western Australia supports Strike’s gas acceleration strategy

Sydney-listed Strike Energy on June 8 announced that its gas acceleration strategy, which focuses on the development of the Walyering, Ocean Hill, and the South and West Erregulla gas fields, has been awarded lead agency service by the government of Western Australia.

Under the lead agency framework, the department of jobs, tourism, science, and innovation will provide case management for government interfaces and coordinate approvals across various government departments. This support will assist Strike in navigating the approvals processes and ensuring efficient communication between government agencies, ultimately helping the company deliver these crucial domestic gas projects into the Western Australian market by the end of 2025 as planned.

Strike said that its gas portfolio is expected to have positive impacts on economic growth, employment, and infrastructure development, particularly in the Mid-West region of Western Australia. A key aspect of Strike's projected impact is the increased supply of competitive, locally produced domestic energy.

“The award of lead agency service from the Western Australian government in support of Strike’s gas acceleration strategy is recognition of the important role that Strike will play in the state’s future energy security. This framework will help Strike meet its target of bringing its four gas fields online by the end of 2025 when the WA gas market is forecast to be in a severe tightness,” CEO Stuart Nicholls said.

“Gas is an important driver of the Western Australian economy and is an enabler for a rapid reduction in the carbon intensity of our energy system by displacing coal and diesel-fired power generation which remains widespread throughout the state. The state’s move into critical mineral processing and value adding to our natural resources only underpins the significant partnership of Strike’s gas with the world’s energy transition,” he added.

Strike earlier this year launched its gas acceleration strategy 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.

The company will look to exploit its existing 371 PJ of net 2P reserves proven up across the Greater Erregulla and Walyering fields, convert the existing 610 PJe of net 2C contingent resources to reserves and test 275 PJe of new net 2U prospective resources to delineate further gas resource upside.

Strike recently closed its off-market takeover bid for Warrego and accepted Hancock Energy’s cash offer of A$0.36 ($0.25)/Warrego share which resulted in realisation of A$136mn in proceeds to Strike.