Oil and Gas News

Strike, AGIG commit to gas plant procurement at West Erregulla

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Strike Energy and the Australian Gas Infrastructure Group (AGIG) will commence procurement of long lead items required for the proposed West Erregulla phase one gas processing plant in Western Australia.

The components to be procured have a gross value of $31.5 million in relation to which the West Erregulla joint venture parties will provide security against break costs in accordance with an agreed escalating commitment profile.

Once AGIG make its construction undertaking, which is expected in the fourth quarter of this year, the long lead items will form part of the gas processing plant to be delivered under a full project development agreement where the existing security will be refunded back to Strike.

Strike managing director and chief executive officer Stuart Nicholls said it is an exciting time for the company as it formally crosses the line into development.

“Whilst only an initial commitment, this procurement paves the way for the beginning of the construction of the AGIG gas plant, which is a central to Strike’s Greater Erregulla gas strategy,” he said.

“AGIG have been a pleasure to work with to this point and the parties have found strong alignment in agree these important interim arrangements. The company looks forward to formalising the investment decision with AGIG in the near term.”