The power station, which is located 8km east of Dongara, has received all the necessary regulatory approvals for development, but as a result of the delay in securing contracts for the supply of electricity, Eneabba Gas will hold off acquiring four GE LM 6000 gas-fired turbines from GE Energy.

In April 2007, the WA Government announced that it expected resource project developers in the Mid-West region to assume responsibility for the bulk of construction costs of the proposed Oakajee deepwater port facility to the north of the existing port of Geraldton and the railway infrastructure associated with delivery of ore to the Oakajee port.

Eneabba Gas said it believed this policy and recent associated environmental decisions were causing developers to delay in making firm commitments to the commencement of projects in the region.

The company has decided not to go ahead with the implementation of the construction phase of the power station project given the off-taker delays.

Eneabba Gas said doing so would put the company in the position where power delivery capabilities were in place, but customers were not ready to accept the produced energy.

Despite the delays, the company has signed a deal with APA Group allowing it to tap into the Parmelia pipeline and use the Mondarra gas storage facility.

“With the APT Parmelia pipeline being some 120m from the fence line of the Centauri 1 power station site, this arrangement is extremely convenient,” Eneabba managing director Mark Babidge said.

“This arrangement follows the previous announcement by Eneabba that it had purchased adequate gas to secure the Centauri 1 power station’s Stage 1 fuel supply and start-up fuel load.”

The five-year deal provides for the storage and transport of up to 46.6 terajoules per day to the Centauri 1 power station. There is also an option to extend the arrangement for a further five years.

Eneabba said a memorandum of understanding signed with Verve Energy last October regarding gas swap arrangements was still in place.

On completion, Centauri-1 will supply the mid-western WA community, as well as Perth.

While the company plans to run the station on natural gas initially, it also has plans for coal seam methane exploration north of Perth and says the plant could eventually run on CSM.