Strike Energy has inked a five-year gas supply agreement with AGL’s Western Australian business, Perth Energy.
Under the sales arrangement, Strike will supply 14.6 petajoules of gas to Perth Energy from its in-development Perth Basin project in WA’s Mid-West region.
Set to start in 2024 over a five year period, the gas will be sourced from the basin and delivered into the WA gas transportation network.
Strike managing director Stuart Nicholls said the agreement said it was competitive environment for buyers.
“The agreement with Perth Energy demonstrates Strike’s commitment to supplying the Western Australian domestic gas market with low-cost Perth Basin gas and validates the role of these fast to market supplies filling the projected mid-decade market shortfalls,” Mr Nicholls said.
“Strike’s domestic gas marketing has confirmed the competitive environment for buyers to secure new long term gas supply agreements, which is being reflected in the WA spot market, with the highest gas prices seen since 2013.”
Strike is also developing Project Haber, a proposed $2.3 billion urea fertiliser processing facility set to be built near Geraldton in Western Australia’s Mid West.
The 1.4 million tonnes per annum outfit was granted major project status by the federal government in February.
Strike shares were up 0.65 per cent to trade at 31 cents.