Strike launches ammonia-urea project based on Erregulla gas

Strike Energy Ltd., Adelaide, launched an ammonia-urea manufacturing development called Project Haber which will be supplied by gas from the company’s 50%-owned Erregulla gas field in the North Perth basin onshore Western Australia.

The news follows completion of a feasibility study of a 1.4 million ton/year plant by TechnipFMC.

Project Haber will secure over 628 petajoules of additional gas demand over 20 years for Strike’s Perth basin gas and will support the commercialization of the Greater Erregulla gas resources.

Approval has been granted for Strike to take an option on a long-term lease for more than 60 hectares of land near Geraldton on the Western Australian coast where there is existing port, rail, and road access.

Design of the new plant includes an 800,000 tonnes/year ammonia production train, 300,000 tonnes of onsite urea storage, power, utilities and stream generation, rail sidings for transport, and a 120 km raw gas pipeline from the Perth basin.

Erregulla field resources will be the backbone of the project which will consume 86 terajoules/day of gas. Strike says construction of a 10 Mw hydrogen electrolyzer will enable the company to take advantage of local wind energy to form a green hydrogen input stream.

Total development has an estimated cost of $1.8 billion and a life of 20-30 years. Fertilizer revenues from Project Haber are estimated to be $416-540 million/year.

Strike will begin formal offtake tender with several Australian and international urea consumers during this year’s second quarter.

The company plans to secure offtake agreements for up to 80% of the product prior to entering a front-end engineering and design phase.