AGIG has been named the preferred proponent to design, build, own and operate a 50 TJ/day gas plant to process gas from the proposed Phase 1 West Erregulla development in the Perth Basin, with the facility to be constructed adjacent to the field including a raw gas trunkline connecting to the upstream project.
The deal is subject to the execution of key terms and conditions by the end of 2020 and would see AGIG invest more than $200 million in infrastructure and services.
AGIG will now begin front end engineering and design (FEED) operations, long lead procurement and other early works necessary to secure the relevant approvals prior to construction, with a view to achieving first gas delivery in the first half of 2022.
Strike Managing Director and CEO Stuart Nicholls said AGIG was the ideal partner to deliver the gas into Western Australia’s gas transmission network.
“AGIG owns and operates WA’s critical Dampier to Bunbury Natural Gas Pipeline (DBNGP), which connects domestic gas production in the north to the major WA southwest market,” he said.
“Strike is well positioning with the West Erregulla gas field being located adjacent to the DBNGP, and in entering into this new partnership with the pipeline’s operator, AGIG.
“This transaction will assist to underpin and accelerate not on the West Erregulla Project, but also the potential development of Strike’s Great Erregulla resources.”
Strike operates the West Erregulla project with a 50 per cent interest.
Joint venture partner Warrego Energy holds the remaining 50 per cent.
For more information visit the Strike Energy website.
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