Strike Energy advances South Erregulla power project as WA capacity prices rise

Strike Energy Limited ( (AU:STX) ) has issued an announcement.

Strike Energy has highlighted material progress on its 85 MW South Erregulla Peaking Power Plant in the Perth Basin, reporting that construction is 82% complete, procurement is 96% complete, and a 15 km overhead power line linking the plant to the grid is now fully built. The power station work package is nearing completion, dry commissioning has begun, and first gas into the upstream gathering system is expected in early Q2 2026, keeping the project on budget and on schedule for targeted completion by 1 October 2026.

The company also stands to benefit from the Western Australian Economic Regulation Authority’s final Benchmark Reserve Capacity Price for 2028/29, set 35% higher than the prior year, which strengthens the economics for new firming generation on the South West Interconnected System and underpins long-term revenue prospects for South Erregulla. Strike already holds 85 MW of certified capacity for the 2026/27 and 2027/28 capacity years and expects to secure the same level for 2028/29, positioning the plant as a key provider of fast-start, flexible gas-fired power to support grid reliability and renewable integration.

The most recent analyst rating on (AU:STX) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on Strike Energy Limited stock, see the AU:STX Stock Forecast page.

More about Strike Energy Limited

Strike Energy Limited is an Australian oil and gas company focused on developing gas resources in the Perth Basin of Western Australia. The company is expanding into power generation through its 100%-owned South Erregulla Peaking Power Plant, aiming to supply flexible, gas-fired capacity into the South West Interconnected System as coal-fired generation retires.

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Technical Sentiment Signal: Sell

Current Market Cap: A$395.9M

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