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09 Oct 2023

Australia's Walyering Starts Gas Sales

09 Oct 2023  by argusmedia   
Australian independent Strike Energy began sales of gas from its Walyering field in Western Australia's (WA) Perth basin on 1 October, with it reporting production has stabilised at 20 TJ/d (534,000 m³/d).

The joint venture, 55pc owned by Strike and 45pc by Australian exploration firm Talon Energy, has also produced 200 b/d of condensate since beginning production. It offloaded its first condensate at South Australia's Port Bonython on 5 October.

Australian independent Santos has a gas supply agreement and condensate processing deal with Strike, which announced the first gas on 26 September.

"Now that stabilised rates for the firm contracted production have been achieved, Strike will commence safely ramping up the field towards it's the facility's nameplate capacity of 33 TJ/d over the coming quarter," the firm said on 9 October.

Walyering has certified proved and probable reserves of 56PJ (1.5bn m³) equivalent. Strike said it expects to recover the A$30mn ($19mn) gross construction cost from gas and condensate sales in approximately two quarters of production.

The Perth basin has attracted significant interest as an onshore source of feedstock for WA's LNG sector. But the state government said it will provide no new exemptions from its onshore gas export ban, after waving through Australian independent Beach Energy's delayed 250 TJ/d Waitsia stage 2 project in August 2020.

Gas-rich WA is forecast to have a tight gas market until 2026, with the state needing to boost supplies to close most of its coal-fired power stations by 2030.

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