Country Energy will buy all the electricity to be produced from a proposed gas fired power station to be built by NPL at Narrabri, NSW. The 11.3 PJ proven and probable (2P) gas reserves in the Coonarah Gas Field are being dedicated to NPL's power station development, with the proven (1P) reserves sufficient to operate the power station at full load for the 10 year term of the PPA.

By entering a PPA, the gas contained in the Coonarah Field can be readily converted to a saleable energy form using well proven technology, and much earlier than would otherwise be the case for commercial gas sales.

The power station will produce electricity at a significantly lower greenhouse intensity than coal fired generators, and so contribute to the NSW Government's greenhouse gas reduction strategy. The economic benefit of the greenhouse benefits will flow to NPL through the sale of NSW Gas Abatement Credits (NGAC's) to Country Energy.

The Narrabri Power project will comprise a: gas gathering system to bring gas by pipeline from the Coonarah Field, 20km west of Narrabri, to the power station site on the western outskirts of Narrabri; a suitably designed gas fired power station; and a proposed transmission line from the power station to Country Energy's Narrabri substation.

The planning for the Narrabri Power project is well advanced, with tenders received for both the power station and the pipeline.