Strike Energy prefers AGIG for West Erregulla gas plant design
Strike Energy Ltd., Adelaide, has partnered with Australian gas infrastructure company AGIG as its preferred company to design, build, own, and operate a 50 terajoules/day gas plant to process gas from the proposed Phase 1 West Erregulla field development in permit EP 469 in the onshore north Perth basin of Western Australia.
The plant is to be constructed adjacent to the field with a raw gas trunkline connecting it to the upstream development. The plant will process the raw gas to sales specification before delivering it into the Western Australian domestic gas transmission network.
AGIG owns and operates the key Dampier-Bunbury natural gas pipeline connecting the North West Shelf fields to southwest Western Australia gas market.
Strike expects the $200 million (Aus.) investment in infrastructure and services under a long-term tariff to enable the company to focus on upstream wells and infrastructure, as it avoids substantial up-front capital.
The deal with is subject terms and conditions, including final investment decisions on respective developments, all to be completed or satisfied by the end of 2020.
The facilitate the timetable and produce first gas in the first half of 2022, AGIG will now begin front-end engineering and design, long lead procurement, and other early works needed to secure requisite tenure and project approvals prior to commencement of construction.
In the meantime Strike is moving forward with a three-well appraisal plan that includes the drilling of West Erregulla-3 and West Erregulla-4 and possibly West Erregulla-5 wells (OGJ Online, Apr. 28, 2020). There is also a planned 3D seismic program to be run over a substantial portion of the remaining part of the permit.
West Erregulla-3 is planned for drilling during the second half of this year. A decision on the need for West Erregulla-5 will be made before the end of November.
All the wells will be drilled for use as future producers to support the proposed Phase 1 development.
Strike is operator of West Erregulla with 50%. Warrego Energy Ltd. holds the other 50%.