Strike Energy's strategic move

Strike Energy (ASX:STX) has announced an unconditional Final Investment Decision (FID) to develop the South Erregulla peaking gas power station. This marks a significant step in their Perth Basin Gas Acceleration Strategy. The project will cost $137 million and aims for completion by October 2026.

Project overview and future outlook

Strike Energy's decision to develop the South Erregulla peaking gas power station is part of its ambitious Perth Basin Gas Acceleration Strategy. The power station is expected to deliver 85 MW of firming power, with improved economics due to higher plant utilization and capacity credit pricing. It will begin operations by October 2026, supported by a $217 million financing package. The project aligns with Western Australia's transition from coal to renewable energy, providing essential grid reliability. Strike Energy anticipates significant revenue from energy sales and capacity revenues, establishing a strong financial outlook.

Executive insights on FID

The decision to proceed with the South Erregulla peaking gas power station is a pivotal moment in Strike's strategy to integrate gas reserves into electricity generation. Our updated economic assessments and market conditions have reinforced the project's viability and value.