QGC ramps up sales to Braemar Power Station

QUEENSLAND Gas Company says it has signed a new agreement to supply up to another four petajoules of gas per annum to the Braemar Power Station in southeast Queensland.
QGC ramps up sales to Braemar Power Station QGC ramps up sales to Braemar Power Station QGC ramps up sales to Braemar Power Station QGC ramps up sales to Braemar Power Station QGC ramps up sales to Braemar Power Station

The company yesterday said the new deal is on top of its existing supply to Braemar and will bring QGC’s total operated output under firm contracts to 23.1PJpa by August 2007.

“The Braemar extension contract will ramp up from February 2007 to a peak daily flow rate of approximately 5.5PJpa,” managing director Richard Cottee said.

“The short-term ramp up contract enables QGC to steadily increase production and will maximise revenue to QGC during the growth development stage.”

Cottee said as QGC’s production capacity increases, it would convert the short-term contracts into longer term supply agreements.

The coal seam methane producer will supply the gas to the power station from its Berywyndale South gas field.

Cottee said QGC’s exploration and gas recovery program has continued to produce gas flows far exceeding its original expectations from the field.

The company last month announced it and joint venture partner Sentient Gas Australia would increase gas supplies by another 2PJ under a one-year deal, boosting gas sales from the CSM field by 25% to 10PJ.

QGC said at the time gas deliveries to the Braemar power project from the Berwyndale field were equivalent to more than 5PJpa, in excess of the original gas sales agreement.

Under that 10-year deal, QGC and Sentient supply a minimum of 4PJpa of gas and have an option to sell additional gas supplies of up to 3.7PJpa, at its discretion.

QGC said the agreement saw minimum gas sales from Berwyndale South reach the equivalent of 10PJpa last month.

Production there exceeded a rate of 9PJpa during September, supplying two 4PJpa gas sales agreements with CS Energy and the Braemar power project months ahead of the contractual deadlines, it said.

Gas sales from the field began in May.