Strike pens gas transportation deal with APA
Energy producer Strike Energy has entered into a two-year gas transportation agreement with energy infrastructure company APA, it announced on March 12. This deal paves the way for the delivery of up to 10 terajoules/day into the Dampier to Bunbury Natural Gas Pipeline (DBNGP) from Strike's Walyering gas processing facility in Western Australia (WA).
The gas transportation will be facilitated through an inter-pipeline connection at Mondarra, commissioned and managed by APA. The anticipated operational date for this infrastructure is late 2024. This collaboration positions Strike to tap into the larger market connected to the DBNGP, where nearly 95% of WA's daily gas is bought and consumed.
By securing this agreement, Strike aims to leverage the increased market access and plans to initiate a marketing process for the additional volume in the coming months, it said.
In a recent achievement, Strike delivered 34 terajoules from the Walyering gas field into the WA domestic gas market on February 6. Notably, the facility demonstrated instantaneous rates equivalent to 38 terajoules/day, showcasing unutilised capacity beyond its original nameplate.
Looking ahead, Strike is set to drill the Walyering-7 appraisal well in the coming quarter. A successful outcome from this drilling activity may unlock the potential for additional throughput on a permanent basis.
Strike commenced gas production at the Walyering gas field in September. Strike sanctioned the Walyering gas field for development in August last year. The final investment decision was made following the completion of the independent certification of a 54.2 PJ 2P gas reserve for the Walyering gas field.
The company last year launched its gas acceleration strategy post-receipt of A$136mn ($92mn) 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.