Forecast to cost $50 million, the facilities are intended to process and deliver up to 17 petajoules per annum of gas from the Tipton West CSM field.

The Tipton West Joint Venture has a firm gas sales contract with ERM Power and Babcock & Brown for the 450MW gas-fired Braemar Power Project and a conditional gas sales agreement with Ergon Energy for a proposed 52MW gas-fired electricity generation project near Dalby.

The Tipton West partners have also signed a memorandum of understanding for sales to BP’s refinery at Bulwer Island in Brisbane.

The Tipton West JV and Australian Pipeline Trust are working towards completion of final documentation and financial close before the end of the financial year, according to Arrow Energy.

“Development activity for the Tipton West project is already well advanced with compressor packages ordered, detailed design in progress and production drilling underway,” Arrow said.

“First gas sales are targeted from the field for early 2007.”

The Tipton West JV comprises Arrow Energy, which holds a 60% stake and Beach Petroleum (40%).