Thebarton, South Australia-based Strike Energy Ltd. said it expects to progress and formalize a binding term sheet for the entire 1.4 million mt/y production volume at its proposed Project Haber granular plant adjacent to Geraldton Port, Western Australia, in the final quarter of this year.
Strike on Sept. 20 said it is in negotiations with its short-listed offtake partners. It drew up the short list of parties after closing the second round of its urea offtake process in early August (GM Aug. 6, p. 38). According to the company, it had received some 4.75 mt/y of firm proposals with attractive pricing formulas, with the offers up to 15 years in length.
The Australian company this week also reported it has completed the Pre-Feed study for Project Haber. The Pre-Feed work began in April (GM April 16, p. 1). Pre-Feed capital estimates put the base cost estimate for the project at US$1.64 billion, which includes the engineering, procurement, and construction of the Haber urea plant and an 800,000 mt/y ammonia plant delivered on site.
This estimate is a 6 percent reduction on the expected capital cost compared to the original estimate by French engineering firm Technip Energies’ feasibility report completed in January 2021 (GM Jan. 15, p. 1).
Strike said it will now progress FEED early works scopes, which include geotechnical and environmental surveys and impact assessments, among other activities, and expects to conclude these in the fourth quarter of this year. The company then will look to formally enter FEED at Project Haber, which it expects to last less than one year and provide sufficient engineering and definition to award an EPC contract to an appropriate contractor at Final Investment Decision.