Strike Energy (ASX:STX) has entered into a five-year gas supply agreement with Perth Energy.
The gas supply will be sourced from Strike’s Perth Basin gas and delivered into the WA gas transportation network. Strike will supply a total of 14.6PJ of gas to Perth Energy, which is expected to commence in 2024.
Strike said commencement is subject to conditions which are usual for a developer of greenfield gas resources.
“The agreement with Perth Energy demonstrates Strike’s commitment to supplying the Western Australian domestic gas market with low-cost Perth Basin gas and validates the role of these fast to market supplies filling the projected mid-decade market shortfalls,” said chief executive officer Stuart Nicholls.
“Strike’s domestic gas marketing has confirmed the competitive environment for buyers to secure new long term gas supply agreements, which is being reflected in the WA spot market, with the highest gas prices seen since 2013.”
Shares in Strike Energy (ASX:STX) are trading 1.6 per cent higher at $0.32.