Warrego Energy and Strike Energy have executed a binding heads of agreement (HOA) for the joint development of the West Erregulla gas field.
The HOA gives both companies in the joint venture (JV) an agreed pathway for Phase 1 of the field’s development, including gas processing and plant capacity, gas balancing and sales, and the optimisation of timing and alignment of critical activities including a final investment decision (FID).
Warrego and Strike have agreed to a Phase 1 gas processing capacity of 80 TJ/day delivered to the Dampier to Bunbury Natural Gas Pipeline (DBNHP), with DBNHP-owner Australian Gas Infrastructure Group (AGIG) the preferred proponent to build, own and operate the gas processing plant.
The JV expects to consider an FID by the end of 2021’s first quarter, while first gas sales are targeted for mid-2022.
Strike Managing Director and CEO Stuart Nicholls said the HOA provides greater certainty for the Phase 1 project development.
“Generating a fully aligned way forward will ultimately lead to a more competitive outcome across all facets of the project,” said Mr Nicholls.
Warrego Executive Director and CEO Australia David Biggs said the agreement provided an “efficient pathway” for the development of West Erregulla.
The gas field is located in EP469 in Western Australia’s Perth Basin and has been awarded Lead Agency Status by the WA Government due to its potential to as a major onshore gas resource.
For more information visit the Strike Energy website.
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