Strike Energy will partner with AGIG for the development of a 50 terajoules a day (TJ/day) plant for the processing of gas from the West Erregulla phase one development in Western Australia.
As part of the long-term tolling arrangement, a gas facility will be constructed adjacent to the West Erregulla gas field in the Perth Basin, with a raw gas trunkline connecting to the project’s stream development and delivering gas into WA’s gas transmission network.
Strike, which is operator of the 50:50 West Erregulla joint venture with Warrego Energy, stated the project represented a more than $200 million investment in infrastructure and services by AGIG under a competitively priced long-term tariff.
The proposed tariff arrangement supports Strike’s view that the Perth Basin permian gas play is a competitive low-cost development.
AGIG is set to begin front-end engineering (FEED), long lead procurement and other early works to secure the tenure and project approvals prior to commencing construction.
Strike managing director and and chief executive officer Stuart Nicholls said: “AGIG has a long and successful history of operating infrastructure in the region and in building relationships with the area’s land holders and stakeholders.
“With our forecast low cost of production, we believe we are in prime position to move forward with confidence at a time when many of our industry are differing or cancelling projects.”
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