The agreement includes a base contract gas supply quantity of six petajoules per annum for 15 years. Arrow also has the option to supply, on a non-firm basis, additional, interruptible gas of up to 7.3PJpa for up to 15 years.
This agreement will underpin the initial phase of development of the Tipton West Project, according to Arrow.
“This agreement brings Arrow’s firm gross operated annual volume of contracted gas sales to 17.3PJpa,” the firm said.
“The company has a further 23.5PJpa under memoranda of understanding and letter of intent, and is now extremely well positioned to achieve its goal of 45PJpa gross operated gas production by 2010.
“Financing options for the field development and associated infrastructure are well advanced. Gas sales agreement discussions with other Tipton West customers are also progressing.”
Financial close for the Tipton West project is targeted for October-November 2005, with first sales gas scheduled for delivery 12 months later.
The Tipton West field is in the Surat Basin about 20km south of the township of Dalby. It has proven gas reserves of 61PJ, probable reserves of 143PJ and possible reserves of 2028PJ, certified by Netherland Sewell & Associates International of Dallas, Texas.
Wambo Power is jointly owned by international investment and advisory firm, Babcock & Brown, and Queensland-based energy resource and electricity generation development group, ERM Power Pty Ltd.
