The state’s peak planning body has approved a $145 million gas plant at Gina Rinehart’s Hancock Energy and John Poynton-chaired Strike Energy’s West Erregulla project.
The state’s peak planning body has approved a $145 million gas plant at Gina Rinehart’s Hancock Energy and John Poynton-chaired Strike Energy’s West Erregulla project.
The Western Australian Planning Commission today approved a gas processing facility and associated infrastructure to be built on a 2,000-hectare lot in Arrowsmith East in the Perth Basin, in the West Erregulla field.
Australian Gas Infrastructure Group has been chosen by the Hancock-Strike JV to design, build, own and operate the plant, according to the development application lodged with the state government’s Significant Development Assessment Unit.
The West Erregulla field is jointly owned by Strike and Warrego Energy, a subsidiary of Hancock.
Raw gas extracted from the Perth Basin will be processed at the proposed plant, before getting piped west into the Dampier to Bunbury Natural Gas Pipeline.
The construction and commissioning phase is estimated to take up to three years with the processing plant to be operational for 20 years, according to the development application.
AGIG will enter into a 14-year lease with the state government over 42 hectares of land needed for the plant and 43 hectares required for the pipeline.
WAPC member Ray Haeren said there had been many balancing and competing elements for the proposal, which went through a comprehensive assessment.
“I do form the view that on balance, with all the amendments, we have something that will make positive contribution [to the area],” he said at the meeting.
In her report to the WAPC, SDAU planning director Paola Di Perna said there had been some concerns from the public and shareholders, over traffic safety and damage to local roads.
"In response to concerns raised by the local governments that the development will not have any ongoing benefits to local communities, AGIG has agreed to make arrangements with the Shire of Three Springs and the Shire of Mingenew to contribute to social or other public infrastructure and an advice note is recommended to this effect," she said.
"Given the ongoing operation of the plant will employ only four staff and generate minimal traffic, there is no need and nexus to impose a condition recommended by a submitter to require the developer to upgrade any existing roads or public transport infrastructure.
"Once operational, the plant will produce a low-cost gas supply for the domestic market given the size of the project, the quality of gas and the proximity of the plant to Perth."
The project site is about 230 kilometres north of Perth, in the state’s Mid West region.
Bound by Carey Road to the north and Natta Road to the east, the site sits in the Shire of Three Springs.
The Department of Energy, Mines, Industry Regulation and Safety granted the Hancock-Strike JV production licence for the West Erregulla project last month.
The JV partners are expected to progress to a final investment decision later this year.
West Erregulla was at the centre of a bidding war between Strike and Hancock for Warrego Energy, which became a Hancock subsidiary in early 2023.