Strike Energy selects AGIG for West Erregulla gas project

Oil and gas exploration firm Strike Energy has selected the Australian Gas Infrastructure Group (AGIG) to build and operate a 50 terajoules per day (TJ/d) gas plant for the first phase of the West Erregulla development.

The West Erregulla gas field is located in the Perth Basin of Western Australia.

Strike Energy said that the project would represent an investment of over A$200m ($131.4m) by AGIG in infrastructure and services of the project under a competitively priced long-term tariff.

Strike Energy managing director and CEO Stuart Nicholls said: “We’re excited about the long term future of the WA domestic market and, with our forecast low cost of production, believe we are in a prime position to move forward with confidence at a time when many in our industry are deferring or cancelling projects.

“AGIG owns and operates Western Australia’s critical Dampier to Bunbury natural gas pipeline, which connects domestic gas production in the north to the major Western Australian South West market.

“Strike is well positioned with the West Erregulla gas field being located adjacent to the gas pipeline and in entering into this new partnership with the pipeline’s operator.”

The 50TJ/d gas facility will be constructed near West Erregulla gasfield with a raw gas trunkline connecting to the West Erregulla upstream development.

The two partners, Strike Energy and AGIG, plan to have a final investment decision (FID) by the end of this year, while the first gas delivery from the plant is expected in the first half of 2022.

In February this year, Strike Energy announced the progression of appraisal and pre-development activities at the West Erregulla gas field.

In November 2019, Strike Energy completed drilling and flow-testing operations of the West Erregulla-2 well. The company released a 2C Contingent Resource estimate of 1,185bcf (gross) for the Kingia and High Cliff Sandstones at West Erregulla.