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The deal with Ergon Energy could be equal around 2.7 petajoules of coal bed methane per year for 15 years as the Government utility considers spending $30 million on two new power plants in south-west Queensland.
The MOU provides for assessment and feasibility studies for a 20MW gas fired electricity generator for network reinforcement in the Oakey region in south-east Queensland and 12MW of well-head electricity generation for a coal seam gas development within ATP 683P near the town of Dalby.
Final feasibility studies for the projects are targeted for completion during 2004.
With this agreement, and previously announced arrangements, Arrow now has agreements and MOUs in place to supply up to 11 PJ of gas per annum from its projects (Arrow's net interest 7.4 PJ pa) for a minimum of 15 years to three major Queensland customers. EnergyReview.net
