Page 12 - AsianOil Week 02 2021

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Strike launches WA petchem development

PERFORMANCE AUSTRALIAN junior Strike Energy is progress- While Greater Erregulla is to be the “back-
ing with an ammonia and urea manufacturing bone” of Project Haber, with the Perth Basin
facility development in Western Australia, which resources described as a “key enabler” for the
will use natural gas supplied from the company’s urea project, Strike aims to supplant gas with
onshore Greater Erregulla project. green hydrogen over the development’s lifecycle.
Strike said on January 11 that it had completed To this end, Project Haber includes the
feasibility studies with international oil and gas ser- construction of a 10-MW hydrogen electro-
vices provider TechnipFMC on a 1.4mn tonne per lyser, which will enable Strike to generate green
year (tpy) urea production facility. hydrogen from local wind energy sources. This
In addition, Strike has also been awarded an is expected to represent around 2% of Project
option for a long-term lease over a 60-hectare Haber’s initial hydrogen consumption. The
(600,000-square metre) site in the Narngulu company is also looking to tap local renewable
Industrial Estate, which is adjacent to the port projects to supply the facility with power, thereby
of Geraldton and has direct access to rail and reducing the amount of fuel gas consumption.
road networks. The estate is also located close to Strike said it had opened talks with several par-
Greater Erregulla, which lies in the Perth Basin. ties over potential offtake and equity deals and that
The downstream project – dubbed Project it intended to launch a formal offtake tender for
Haber – will include an 800,000 tpy ammonia local and international consumers in the first quar-
train, 300,000 tpy of onsite urea storage, power, ter. The company aims to secure offtake agreements
utilities and stream generation, railway sidings for up to 80% of the project’s ammonia production
for transport, and a 120-km gas pipeline from before entering into front-end engineering.
the Perth Basin. Strike also expects to begin marketing an
Project Haber, which is estimated to cost equity stake in the project by the end of this year,
around $1.8bn and have a useful life of 20-30 while aiming to retain a 30% carried stake. Pro-
years, is expect to consume more than 628 PJ ject Haber’s annual revenue is projected to reach
(16.36bn cubic metres) of Greater Erregulla’s AUD540-700mn ($417.8-541.6mn) based on
production over 20 years. current urea prices.™

Squadron seeks to close LNG offtake deals

PROJECTS & AUSTRALIA’S Squadron Energy is striving to shortfall could emerge on the East Coast market
COMPANIES close talks with potential customers for its liq- as soon as 2023, Squadron remains confident
uefied natural gas (LNG) import project at Port over the project’s future.
Kembla in New South Wales. “In the absence of someone going and finding
Squadron CEO Stuart Johnston said on Janu- a massive gas field that we’ve missed for the past
ary 11 that he expected to finalise long-term gas 60 years down in Victoria, all the other sources
sales agreements (GSAs) with interested parties are either a long way away, expensive, a combi-
in the near future. nation of both ... or they will take a long time to
“Where we are at the moment is we are really develop,” Johnston said. “When you’re looking
working to finalise those customer agreements,” for security of supply, it will be a very good insur-
Johnston told local daily The Sydney Morning ance policy for Australia to have one of these ter-
Herald (SMH). “We are in advanced stages of minals built.”
discussions with several customers, and that’s The project is expected to supply more than
the next piece to fall.” 75% of NSW’s annual gas needs – around 100 PJ
Squadron is one of a number of developers (2.6bn cubic metres) – by the end of 2022. This
looking to establish import projects along the would put a sizeable dent in the 500mn cubic feet
south-east coastline using the floating storage (14.16 mcm) per day supply shortfall that AEMO
and regasification unit (FSRU) model. How- has warned could emerge in the near future.
ever, while Squadron has signed up power and Wood Mackenzie analyst Daniel Toleman
gas retailer EnergyAustralia as a customer, it has told the SMH that a final investment decision
struggled to win over other potential buyers. (FID) on the Port Kembla terminal was likely in
Reports emerged in November 2019 that the first quarter of this year. Squadron has said
the company had failed to finalise GSAs with previously that it expects to wrap up construc-
12 industrial consumers that had originally tion work within 16 months of FID, which would
revealed their interest in 2018. pave the way for first gas to flow in the second
But with the Australian Energy Market Oper- half of next year if the company’s current time-
ator (AEMO) warning last year that a gas supply line is met.™

P12 www. NEWSBASE .com Week 02 14•January•2021