Strike Energy Ltd., Thebarton, South Australia, which has proposed Project Haber, a 1.4 million mt/y urea project adjacent to Geraldton Port, Western Australia, said on Aug. 4 it has closed the second round of its urea offtake process, with some 4.75 mt/y of firm proposals with attractive pricing formulas received. It said the offers were for up to 15 years in length, which can support future bankability of the proposed development.
Strike said it has subsequently short-listed parties to proceed to negotiate binding agreements and will look to conclude those negotiations over the coming quarter. Once binding offtake agreements are in place, Strike will then move to market and sell down the equity in the project, and has appointed Azure Capital to support this process.
Strike’s Board of Directors will meet in the September quarter to review the pre-FEED outcomes from Technip Energies and Haldor Topsoe and will look to make recommendations on the ownership and operating structure for the proposed development.
It said these recommendations, in conjunction with the latest capital estimate from the pre-FEED, will be critical for informing the equity sell down process and subsequent debt sizing and structuring programs, where Azure Capital will be supported in debt advisory by Natixis and ANZ.
The second round was a formal “Request for Proposal” process with the proposed offtakers, with a view to converting initial expressions of interest into binding long term offtake agreements.
In June, Strike concluded the first round of its urea offtake process, and said it received expressions of interest from “numerous” potential offtakers for both Australian and international sales. According to Strike, it received expressions of interest totaling more than 3.5 million mt/y (GM June 11, p. 29).