Production rates from this North Queensland project continue to increase, with 21 TJ/day currently being delivered to Enertrade and Ergon. Additional capacity of 3 TJ/day is to be connected to the gathering system in the coming weeks, CH4 said.
About 75% of CH4’s 42 wells in operation are at operating pressure, with the remaining 25% still being commissioned.
The revised agreement allows for an extended period of ramp up to full production by mid year, with higher volumes in the second half to offset lower volumes in the first six months.
Enertrade has nominated to buy 14.8 PJ in 2006, up 23 per cent from the 12 petajoules in its sales agreement for 2005.
The longer ramp-up time will impact on its full year 2005 forecast by about half a petajoule with a corresponding positive impact in the first half of financial year 2006, according to CH4.
The Moranbah gas project, a 50/50 joint venture between operator CH4 and BHP Billiton Ltd, holds a 15-year contract to supply up to 290 petajoules of gas to Queensland government power corporation Enertrade.
Enertrade will transport the gas via a 391km pipeline from Moranbah to Townsville, where it will be used for electricity generation at Transfield's 220MW Townsville power station.
