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- Strike Energy (STX) will begin selling WA-made gas to Santos in early October
- Santos and its partner Talon first began producing gas from Walyering on Monday
- The partnership will port gas into the Parmelia Gas Pipeline which hugs the southwest coast and services a mix of retail and industrial customers
- Parmelia also connects to ATCO-owned residential and commercial gas networks in the Perth metro
- Shares last traded at 40.5 cents
Strike Energy (STX) has kicked off gas production from the Walyering gas field onshore in Western Australia for export via the Parmelia Gas Pipeline, managed by APA.
Simultaneously, production is set to increase in the coming week before final-stage gas deliveries, including sales to Santos (STO), commence in early October.
On Tuesday, Strike confirmed that gas production officially commenced at 1:00 pm on Monday. In July, the company faced delays on-site.
The Parmelia pipeline, overseen by APA, is a 416-kilometre-long transmission network that transports gas from the Perth basin gas fields and the Carnarvon basin, moving it north or south along the coastline.
The Parmelia pipeline serves industrial users along with connecting to ATCO-owned gas distribution network infrastructure that serves the Perth metropolitan area.
It caters to network, retail, electricity generation, and aluminium refinery customers, with the latter located in the Kwinana Industrial Area (KIA). The pipeline previously served BP’s crude oil refinery at the KIA but now functions as a fuel import facility.
Strike partners with Talon Energy (TPD) at Walyering, with Talon being a gas explorer and producer operating in both Australia and Mongolia.
Back in August, Strike announced it was intention to acquire Talon Energy.
Strike holds the majority share at 55 per cent interest, with Talon holding the remaining stake. Strike CEO Stuart Nicholls noted the company is benefitting from a WA state government strategy to accelerate production from the Perth Basin for domestic supply.
“The commencement of production from the Walyering gas field marks a significant milestone in Strike’s history. The rapid transition from explorer in the Perth Basin in 2019 to a producer is now complete,” he said.
“It has been 10 years since the last operator commissioned a new greenfield domestic gas development in WA, and as such, the Strike team is incredibly proud of this achievement.”
Regarding Strike’s partner, Talon, CEO Colby Hauser expressed a similar sentiment.
“We look forward to working with Strike and supplying firm gas into our gas sales agreement with Santos,” he said.
STX shares last traded at 40.5 cents.
