27/05/2021 - 14:50

Urea buyers signal interest in Strike plant

27/05/2021 - 14:50

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There’s strong interest from potential offtake partners for a Mid West urea plant, Strike Energy said today, while it works on deals for water and port access.

Urea buyers signal interest in Strike plant
Strike chief executive Stuart Nicholls. Photo: Gabriel Oliveira

There’s strong interest from potential offtake partners for a Mid West urea plant, Strike Energy said today, while it works on deals for water and port access.

Strike is developing its proposed project Haber, a $2.2 billion urea plant in the Mid West, with a decision targeted for next year.

It is also hoping for a final investment decision on its West Erregulla gas project by September.

If all goes to plan, West Erregulla gas will supply production at Haber, supported by a small amount of renewable hydrogen.

Today, Strike told investors it had expressions of interest from local and export markets to offtake the urea, with proposals totalling 3.5 million tonnes per annum, above its 1.4mtpa planned capacity.

The company will move into a request for proposal stage.

An equity sale program is set to commence in the December quarter, after attracting unsolicited interest from Australian and Asian partners, the company said.

Strategen-JBS&G has been selected to work on environmental and planning approvals, and a non-binding memorandum of understanding was inked with Australian Gas Infrastructure Group for 8 gigalitres of water annually.

That would be supplied from a desalination plant in the Mid West, starting in 2025.

Strike has also signed a cooperation agreement with the Mid West Ports Authority to investigate shipping from Geraldton, with a port access agreement to be negotiated.

Strike shares closed at 33 cents each, up 4.8 per cent.

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