The news follows last week’s announcement by fellow NSW explorer Metgasco that it had received a $1 million grant from the Australian Government to fast-track its Casino CSM project in the state’s north.

Eastern Star plans to connect its Bibblewindi and Bohena production pilots to the Wilga Park power station, expanding it from an 11MW facility into a 40MW one.

Declaring it a major project will accelerate the development of its CSM resources and expansion of the existing gas-fired power station, the company said.

“The NSW Government has recognised that PEL 238 will bring significant benefits, including delivering gas independence to NSW and providing an environmentally friendly energy source,” Eastern Star managing director Dennis Moreton said.

“The approval process for the project will now be handled by NSW Department of Planning rather multiple government bodies.”

Eastern Star plans to have independently certified natural gas reserves in its PEL 238 permit in the next quarter.

Once reserves reach 600 petajoules, the company would have satisfied the terms of a memorandum of understanding with Macquarie Gernation regarding the potential supply of CSM gas to the Bayswater power station, located in the Hunter Valley.

Last week, Eastern Star brought the last of its nine Bibblewindi pilot wells on to pump.

The project is in the southern portion of the 265 square kilometre Bohena Project Area, which contains up to 3700PJ of gas-in-place within two sets of coal measures.