Gas tolling arrangements for the Arrow and CS Energy joint venture are also now unconditional. The agreements allow APT to fund construction, own and operate the facilities for 15 years.
The project will filter, dehydrate, compress, meter and deliver gas from the Kogan North coal seam gas field to APT's Roma-to-Brisbane pipeline for transportation to CS Energy’s Swanbank E Power Station.
The facilities and contractual arrangements have been designed to allow for future potential expansion.
Arrow is project manager during the construction phase of the facilities. All 30 development wells have been completed and compressors are expected to arrive at the site during the next few days. The first gas for sale should be delivered in November 2005.
The Kogan North upstream development is 80%-funded by CS Energy and 20% by Arrow under a farm-in arrangement, whereby CS Energy increases its upstream equity from 7.5% to 50%.
