Strike Energy has announced a final investment decision (FID) to proceed with the South Erregulla gas power plant in Western Australia.
The 85 MW facility will supply firming power to the South West Interconnected System through the existing 132 kVa transmission line between Geraldton and Three Springs.
The project’s FID was bolstered by improved economics due to increased projected plant utilization and high future capacity credit prices.
Utilization is expected to rise from 18.8% to at least 30%, driven by updated demand and supply modelling from the Australian Energy Market Operator.
The A$137 million project has secured reserve capacity credits for 2026-27 and network access for grid electricity delivery.
Located on 3,500 hectares above the South Erregulla gas field, the plant is fully owned by Strike under production license L24. Construction funding is supported by a A$217 million package from Macquarie Bank and cash flow from Strike’s Walyering gas project.
Strike CEO Stuart Nicholls emphasized the integration of gas reserves with peaking power generation as a key element of the company’s Perth Basin gas acceleration strategy. The project leverages nearby electricity transmission infrastructure to maximize value through integrated gas-to-power operations.
The facility is set for commissioning before October 2026, aligning with energy sales for the 2026-27 capacity year.