Proposed pipeline�s proximity pumps up Bohena CBM partners

THE Gunnedah gas project partners have been buoyed by news that a 300km natural gas pipeline will be running close to their Bohena CBM project, opening up the gas markets of Tamworth and subsequently, the Sydney and wider NSW gas markets.

The partners – Eastern Star Gas, Hillgrove Resources and Gastar Exploration – said the link to the Moomba-Sydney natural gas pipeline through Dubbo provided them with the potential opportunity to directly access the Sydney, Newcastle and Wollongong markets where they said there the demand of approximately 150 PJ’s per annum has been estimated to increase to 200 PJ’s per annum by 2020.

The 303 kilometre long, A$120 million pipeline will extend from Dubbo to Tamworth and will run close to the south eastern corner of PEL 238 through the town of Breeza, only 125 kilometres away from the Bohena project, currently undergoing a six well production testing program.

The pipeline is being built by the Central Ranges Natural Gas and Telecommunications Association. Construction of the pipeline is planned to start in August with an expected commencement of operations in early 2006.

Interests are Eastern Star Gas Limited earning up to 32.5%, Hillgrove Resources Limited earning up to 32.5% and Gastar Exploration Limited decreasing to 35%.