The delivery is the result of the first phase of a two-phase project, with the first phase encompassing gas from two pilot wells in the Airth-based project being fed into a gas turbine, which in turn generates electricity.

The second phase of the project has been designed to expand generation capacity and encompasses the production of CSG into the local pipeline network.

Scottish Southern Energy is to pay for up to 11 billion cubic feet for a period of up to eight years at the prevailing spot price.

Currently, the spot price is roughly $US9-10 per thousand cubic feet of gas.

The second phase of the project will require the development of associated surface infrastructure, including compression facilities and local pipelines, which Dart said should be completed in 2013.

Field development for the second phase has been given the nod from the UK Department of Energy and Climate Change, with approval for the technical plan expected during the third quarter this year.

The first and second phases of the project will require an initial investment of roughly $80 million, which Dart told the market this morning would be funded mainly from a facility with HSBC still being worked through.