The Brisbane-based company said the agreements allow for APT to now reimburse the joint venture for construction costs already incurred and to own and operate the facilities in southeast Queensland for 15 years.
“This completes the funding requirements for the first stage of development of Tipton West,” Arrow said.
“These agreements establish a commercial mechanism for the Tipton West JV to process its Tipton West field coal seam gas for delivery into the Wambo Power Venture high-pressure pipeline from Tipton West to the Braemar Power Project.
“The contractual arrangements also provide for the future expansion of the facility and connection into APT’s Roma-Brisbane pipeline as additional gas sales from the Tipton West field are secured.”
The company said the Tipton West project is “well progressed” with all development wells drilled and majority of those completed and dewatering.
All six compressors and other ancillary equipment are now in commissioning, and first sales gas was delivered on February 6.
The field has been initially developed to produce total sales gas of about 10 petajoules per annum of gas.
The Tipton West project is a JV between Arrow (60%) and Beach Petroleum (40%).
