Apache Northwest (55% and operator) and Santos (45%) have contracted with the developers of the Kwinana power station, Wambo Power Ventures, to supply the power station’s operator, NewGen Power, with 229 petajoules (PJ) of gas over 15 years.
The term may be extended by a further 10 years by mutual agreement. First gas is expected to be delivered before the end of 2008.
This is the second significant contract for the John Brookes field. Last year, Newcrest Mining Limited contracted with the John Brookes Joint Venture to provide 120 PJ of gas over 15 years for power generation at the Telfer gold mine, in the Pilbara region of Western Australia.
The field was discovered in 1998 with the drilling of the John Brookes-1 exploration well and successfully appraised during 2003. It is due to begin production later this year, according to Santos managing director, John Ellice-Flint.
“Winning another major new WA contract is not only good news for Santos and Apache but is a further boost for the development of the Varanus Island gas hub,” Ellice-Flint said.
