Chairman Robert Bryan told shareholders at QGC’s annual general meeting that growing concerns about global warming was encouraging the use of clean energy for both commercial uses and electricity generation more generally.

“This trend will underpin the continued growth of coalbed methane and impact very positively on QGC,” he said.

“By market capitalisation QGC is now the largest CBM specialist company in the country and now has the largest proved (1P), as well as proved and probable (2P) gas reserves of any such company.”

Bryan said the company’s three gas sales contracts would generate $30 million a year in revenue a year once production, scheduled for 2006, had started.

“We are very comfortable about the profit levels that will be achieved from these contracts,” he said.

QGC has unconditional sales of 15.4 petajoules a year forward sold, with the option to supply a further seven petajoules a year. It is also seeking more gas sales and is planning two new power stations at Chinchilla and at Gibson Island, within the Port of Brisbane.

“The former will attract cost advantages through being located on our Berwyndale South gas field, and the latter through being able to supply clean energy and very competitive electricity into Queensland’s rapidly expanding Trade Coast,” Bryan told the AGM.

QGC would be cost-competitive with the Papua New Guinea gas project, he said, based on low capital costs and individual well flow rates running at over 700,000 cubic feet a day.

The company’s most advanced project, Berwyndale South, is due to start delivering gas in April, three months ahead of schedule.

The new Braemar gas contract will be using infrastructure at Berwyndale South that is being established to meet the CS Energy contract.

“In this way QGC is enjoying major cost advantages typically associated with ‘bolt-on’ projects,” Bryan said.