Strike secures gas supply deal with Aussie power producer

Sydney-listed gas company Strike Energy on January 3 announced the signing of a take-or-pay gas sales agreement with leading Australian power producer Alinta Energy.

Strike committed to delivering 3.4 petajoules of gas through the Parmelia gas pipeline over two years, commencing in February 2024. The financial details of the deal remain undisclosed. 

The strategic move follows Strike achieving a maximum capacity of 33 terajoules/day and 265 barrels/day of condensate at at its Walyering gas field in Western Australia on December 24. 

The company said that the upstream performance from the Walyering gas field has been in line with expectations, and all reservoirs have now been opened and the original downhole gauges retrieved. 

“Reaching nameplate capacity at Walyering within 90 days of start-up of the facility marks a significant achievement for Strike’s project team,” said Strike CEO Stuart Nicholls. “With the confidence that Walyering can operate steadily at these rates or higher, Strike will increase its gas marketing activities, which starts with this additional strip of firm offtake to Alinta Energy.”

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.