Plant construction activities for Ergon’s Dalby Generation Project and financial close for necessary development of the Tipton West CBM field are expected to be completed in December. Gas supply is expected to start from January 2007.

This latest sales agreement with Ergon Energy, a Queensland government-owned utility, follows other recent deals.

In August, Arrow signed a deal with the Braemer Power Project, which will take gas from Arrow’s Kogan North project.

Arrow will also develop its own power plant near Dalby, to be supplied by CBM from the company’s 100%-owned Daandine field. Country Energy has agreed to buy the power produced by the plant, while Alinta has agreed to finance and operate the power station.

This latest deal brings Arrow’s gross operated contracted sales gas to 23.4PJ per annum. The company has said it aims to be producing and selling 45PJ a year by 2010.