The company today said along with joint venture partner Sentient Gas Australia, it would increase gas supplies under the one-year deal, boosting gas sales from the CSM field by 25% to 10PJ.
“For QGC, the agreement provides additional revenues with minimal extra capital cost for the joint venturers,” managing director Richard Cottee said.
“For the customer, it locks in reliable supplies of coal seam gas for Queensland’s largest gas consumer – the 450 megawatt gas-fired Braemar Power Station which supplies electricity direct to the national electricity market.”
QGC said gas deliveries to the Braemar power project from Berwyndale South gas field are currently equivalent to more than 5PJpa, in excess of the original gas sales agreement.
Under that 10-year deal, QGC and Sentient supply a minimum of 4PJpa of gas and have an option to sell additional gas supplies of up to 3.7PJpa, at its discretion.
QGC said the new agreement would see minimum gas sales from Berwyndale South reach the equivalent of 10PJpa this month.
Production there exceeded a rate of 9PJpa during September, supplying two 4PJpa gas sales agreements with CS Energy and Braemar Power project months ahead of the contractual deadlines, it said.
Gas sales from the field began in May.
