In a statement yesterday, the CSM producer said the 135MW Condamine combined cycle plant, to be built on its freehold land, was scheduled for completion by July 2009.

The facility, which will supply electricity to the national grid, will use both QGC’s CSM gas and water recovered as part of the production process.

Managing director Richard Cottee said locating the Condamine power station adjacent to QGC-operated gas fields would reduce transportation and processing costs.

“This will be the first time in Australia that a power station will be purpose-built to take advantage of the cost benefits of a location on a coal seam gas field,” he said.

“The chosen location for the power station will deliver substantial capital and operating cost savings, allowing us to generate low cost electricity for the national electricity market.”

Cottee added that a combined cycle facility would also reduce greenhouse gas emissions.

“Technology of this type is more efficient than even the most efficient coal-fired power stations recently built and significantly more efficient than older black and brown coal-fired power station. Being gas-fired, there also will be no particulate emissions,” he said.

The Condamine power station will be located on QGC’s freehold property, next to the Warrego Highway and 8km east of Miles in the Surat Basin.

Austrian Energy & Environment and Siemens were named as the preferred tenderers to develop the project.

QGC and ANZ Infrastructure Services expect to finalise the engineering, procurement and construction contract in the next quarter, with construction due to begin soon