Arrow today said becoming an electricity supplier was another key milestone for the company.

“It completes a year during which Arrow has also established itself as a substantial gas supplier and enhances its position as a significant player in the growing east coast energy sector,” Arrow said in a statement.

The 27.4 megawatt plant, in the township of Dalby, is powered by coal seam methane gas from Arrow’s 100% owned Daandine field.

Prior to the power station becoming operational, ramp-up gas from the field had been sold to CS Energy since September.

Arrow said construction started in March this year and all 11 GE Jenbacher reciprocating engines are now on site and installed. The first of these engines has been commissioned and is in operation.

Gas is reaching the plant via the existing Kogan North gas processing and compression facilities, next to the field.

Arrow has a gas tolling agreement with a subsidiary of the Australian Pipeline Trust, which provides for the ownership and operation of the Daandine power station facility.

The Daandine field has 24 billion cubic feet (Bcf) of probable gas reserves and 337Bcf of possible gas reserves, as certified by independent consultants, Netherland, Sewell and Associates.

About 30Bcf will be used for the 27.4MW power station, with electricity sales to be made to Country Energy, the New South Wales Government-owned electricity retailer, under a long-term power purchase agreement.

The Daandine field is Arrow Energy's third producing project, behind Moranbah and Kogan North. First sales gas from Arrow's fourth project, Tipton West, is expected in first quarter 2007.