Operator Arrow Energy today said under the revised gas sales agreement, the Tipton West JV will supply 10PJ per annum, rather than the 6PJ per year previously agreed upon. This equates to a total supply of 150PJ.

The Brisbane-based company said the JV, which is a partnership between Arrow and Beach Petroleum, also has additional gas put option arrangements with the Braemar Power partners, which allow it to supply up to a further 7.3PJ per annum.

The parties expect to finalise amendments to the existing gas sales agreement by mid-April.

The Tipton West JV began gas supply to the Braemar Power project’s 450MW gas-fired power station in early February.

Arrow said the latest increase in firm gas sales to Braemar effectively replaces the conditional gas sales agreement with Ergon Energy, which will no longer proceed following the Queensland Government’s sale of the retail business of Ergon.

“The additional firm gas sales to Braemar Power Partners is to an existing customer, [so it] requires no new capital expenditure or infrastructure and delivers sales revenue earlier than would otherwise have been the case compared to the previous Ergon agreement,” the company said.

Arrow holds 60% in the Tipton West JV; Beach Petroleum holds the remaining 40%.