The project already has a list of foundation customers headed by a major supply agreement with Enertrade to supply gas to power the Townsville Power Station.

Worley will provide EPCM (engineering procurement and construction management) for the project, while the detailed design stage of the project is nearing completion and it is entering the procurement phase.

CH4 Gas is currently also rolling out a significant drill program which will see 45 new wells brought into production.

The company's five initial wells have been in continuous production for up to 32 months with production from these wells each averaging in excess of 300,000 cubic feet of methane per day. The most recent well continues to deliver in excess of 1,000,000 cubic feet per day.

Worley has previously played an important role in the emerging coal seam gas industry in Queensland having provided similar services to Santos for the development of its $60 million Scotia gas project in central Queensland.

"As a company we believe that coal seam gas in Queensland will become a major industry for the state and be critical to the state's energy needs providing a clean and environmentally friendly energy source," said Worley's Queensland director Mike Mollison.

CH4 managing director and CEO Louis Rozman said the alliance gives CH4 the project delivery and engineering capability to ensure the delivery of the Moranbah Gas Project for first gas early 2005. EnergyReview.net