A development application for the West Erregulla gas project in the Mid West has been lodged, ahead of a potential tightening of the domgas market.
The application was for a $145 million processing facility in the Shire of Three Springs, submitted to the state’s Special Development Assessment Unit by CLE Town Planning and Design.
It’s understood the plant is for Strike Energy and Warrego Energy’s West Erregulla gas project.
The development will supply domestic gas, with offtake to Wesfarmers and Alcoa.
Construction is planned to start this year, with first gas by early 2024.
The project was one of four on the Australian Energy Market Operator’s list of likely domestic gas developments in WA in its December market forecast.
West Erregulla was pencilled in for 87 terajoules a day.
AEMO warned of a potential shortage in the local market by 2025, with the deficit to run as high as 85tj/d.
At that level, the shortfall would be about 8 per cent of total domestic supply.
