Strike Energy will adjust its carbamide project

Australian oil and gas company Strike Energy has decided to relocate its future carbamide plant from the village Geraldton to the village of Three Springs. The company will pay $13.5 million for 3.5 thousand hectares of land located above gas deposits.

Strike Energy will also reduce the length of the gas pipeline to the future facility and at the same time reduce the planned capital investment by about $100 million. Its design capacity is 1.4 million tons of carbamide per year and the cost is $2.3 billion.

Currently, the demand for carbamide in Australia is 1.9 million tons per year, of which 1.7 million tons are coming from abroad. By building and running the plant, Strike Energy will reduce Australia’s dependence on carbamide imports.

Strike Energy plans to make a final investment decision on the venture project in the middle of next year.