Verve to power up on Eneabba gas

ENEABBA Gas has signed a memorandum of understanding with Verve Energy to give the generation business access to the first tranche of gas supply the former purchases from the North West Shelf Gas project.
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The Perth-based company today said under the agreement, Verve will transport and utilise the Eneabba gas until the start-up and plant testing of its Centauri-1 power station near Dongara, in Western Australia, in the 2008 first quarter.

Eneabba said the deal would see it meet its initial requirements for the power station.

Verve will have access to the gas until December 2007. In return, it will support Eneabba’s access to the South-West interconnected system (SWIS) network by using unused capacity at its Mungarra Power Station connection point.

Eneabba’s ability to use the capacity remains subject to systems approval by Western Power Corporation – Networks, which it said is expected soon.

Verve is responsible for power generation in the SWIS system, the area bound by Kalbarri in the north, Kalgoorlie in the northeast and Albany in the southeast of Western Australia.

Eneabba owns the Centauri-1 site 8km east of Dongara and has already had geotechnical work done, as part of an active study, to ensure project deadlines can be met.

On completion, Centauri-1 will supply power to the mid-western WA community, as well as Perth. While the company plans to run the station on natural gas initially, it also has plans for coal seam methane exploration north of Perth and says the plant could eventually run on CSM.

Eneabba Gas started trading on the Australian Stock Exchange in April.

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