The gas contract can be supplied from any of Mosaic's gas-fields with substantial delivery due to begin in April 2005 for the period of five years at 3 PJ each year. An early delivery of 3 terajoules a day will be delivered through June, July, August and December this year.

Additionally the contract allows both parties, by mutual agreement before April 2005, to increase the amount from 3 PJ a year to 4 PJ a year.

The Queensland Government owned CS Energy currently operates Swanbank, Callide and Mica Creek power stations with development of the new Kogan Creek station announced last week.

"The CS Energy contract plus sales from oil, LPG and other gas contracts should see annual revenue for the company in excess of $17 million by mid 2005,” said Mosaic's chief executive officer, Dr Howard Brady.

"This contract secures Mosaic's ongoing development and future.”

Mosaic has already begun fast-tracking its Waggamba development, which will provide an important component of the new business plan.