PERTH (miningweekly.com) – ASX-listed Strike Energy on Monday announced plans to advance its Project Haber urea project, in Western Australia.

The A$2.3-billion project would consist of a 1.4-million-tonne-a-year urea production facility processing gas from Strike’s Greater Erregulla development, in the Perth basin.

The company told shareholders that it has been awarded an option for a long-term lease over a 60 ha site at the Narngulu Industrial Estate, which is adjacent to the Geraldton port, and has direct access to state rail and road networks.

Strike is planning an 800 t/y ammonia production train at the facility, as well as 300 000 t of on-site urea storage, power utilities and stream generation, rail sidings for transport and a 120-km raw gas pipeline from the Perth basin.

Project Haber is expected to consume some 86 TJ/d of natural gas and up to 628 PJ over a 20-year time frame, with the project expected to have a project life of between 20 and 30 years, and would be capable of generating gross fertilizer revenues of between A$550-million and A$700-million a year, based on the current urea prices.

“Strike Energy believes Australia should be adding value to its natural resources, rather than just exporting them for others to high grade and sell back," said MD and CEO Stuart Nicholls.

“The launch of Project Harber concludes more than a year of feasibility work by the company aimed at identifying the best way to monetize Strike’s world-class gas resources in the Perth basin. That work has resulted in this compelling development opportunity, which can kickstart Australia’s gas-led recovery, and manufacture Western Australia’s natural resources into a product stream the country now relies on global imports for.

“Once in production, Project Haber can support the ongoing competitiveness of Australia’s agricultural industries by lowering one of the main cost inputs into Australian farms, all while employing regional West Australians and consuming local natural gas.”

Strike has now entered into discussions with several potential offtake and equity partners for the project, with the company undertaking a formal offtake tenders in the second quarter of this year.

“Strike is confident that project Haber will attract and secure high quality partners and customers in order to generate the appropriate financing conditions to commit to construction. On completion, we see Project Haber delivering considerable shareholder value in the form of long-term industrial revenues,” Nicholls said.