, , ,

Watch: Strike unveils power plant plan for WA

Strike Energy has announced its plan to develop an 85MW peaking gas power plant in Western Australia, leveraging its South Erregulla gas reserves.

The company has submitted an application to the Australian Energy Market Operator (AEMO) for capacity credits and network access to support the project.

 

The proposed plant, slated to begin operations by October 2026, will be located on Strike’s wholly owned land known as The Precinct, approximately 280km north of Perth.

It will be fuelled by the newly re-certified South Erregulla gas reserves, which are estimated to support a project life of over 25 years.

The company expects the plant to generate revenue of $40-$50 million annually over the first five years of operations. It is targeting an unconditional final investment decision by November 2024, subject to the award of capacity credits and minimum network access quantity.

Estimated capital costs for the project range between $120 million and $160 million. Strike has already secured a $153 million development financing package from Macquarie Bank, with $53 million allocated specifically to this power project.

The announcement comes as Western Australia faces potential generation capacity shortfalls, as identified in AEMO’s latest Electricity Statement of Opportunities report.

In the report, AEMO underscored the need for continued capacity investment from 2027 onwards, as retiring coal plants combined with rising demand will create a forecasted 391MW shortfall in 2027-28, growing to 2,880MW by 2033-34.

Subscribe to Energy Today for the latest project and industry news.

Send this to a friend