Australia's Strike secures environmental approvals for West Erregulla project

Strike Energy has secured primary environmental approvals for the planned West Erregulla development in Western Australia, which contains the West Erregulla gas field, the company announced on July 9.

The EP469 joint venture received its ministerial statement under the Environmental Protection Act 1986 for the upstream infrastructure development of the West Erregulla gas field. Simultaneously, AGI Operations, a subsidiary of Australian Gas Infrastructure Group, received their ministerial statement under the EP Act for the midstream infrastructure, including the development of the West Erregulla processing plant and pipeline.

These approvals mark the culmination of the environmental impact assessment process, which involved technical evaluation and stakeholder consultation over more than three years.

“This approval is a major de-risking event for the West Erregulla development project, as the EP469 joint venture participants, together with AGIG as the selected midstream service provider, continue to work towards a final investment decision,” the company stated.

The EP469 joint venture comprises Strike Energy as the operator with a 50% interest, while Warrego Energy owns the remaining 50%.

Last year, the company launched its gas acceleration strategy post-receipt of A$136mn ($90.4mn) in proceeds from the sale of its Warrego Energy shares. The company is targeting up to four sources of gas production - Walyering, Ocean Hill, and the South and West Erregulla gas fields - to come online by the end of 2025, commencing with Walyering.

Last month, Strike announced plans to develop a fully integrated 85 MW peaking gas power plant in South Erregulla. The proposed power plant will be fueled by South Erregulla’s gas reserves, which support a project life of over 25 years. The project is expected to utilize about 1.3 petajoules of gas per year and generate revenue of A$40mn to A$50mn/year over the first five years of operations.