Gastar, which is ESG's joint venture partner in the Narrabri coal seam methane project and already holds 35% of the CSM rights over the PPL 3 area, will also pay an additional $US0.25 million after the station's successful expansion.

ESG is currently expanding Wilga Park to use gas from its CSM pilot production wells.

ESG managing director David Casey said the alignment of ESG's and Gastar's interests in Wilga Park, PPL 3 and Narrabri CSM projects will "facilitate both coordinated development of the projects and utilisation of ever-increasing quantities of pilot-production coal seam gas".