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The units will then be transported to Narrabri, where the power station site is currently under construction. In addition, the first shipment (9.7 kms) of 150 mm coated steel pipe that will be installed as the buried gas gathering/pipeline system has arrived in Narrabri. Trenching and pipeline laying is expected to commence in about a months time.
Commissioning of the power station is anticipated in late May/early June, with first cash flow from full 10MW operating capacity shortly thereafter. Financial close on the $3.5 million project finance being provided by N.M. Rothschild Australia is nearing completion, with only a few minor conditions precedent remaining to be fulfilled (eg. registration of pipeline easement agreements).
The 11.3 Petajoules (PJ) of Proved and Probable (2P) gas reserves in the Coonarah Gas Field are dedicated to the power station, with the Proven (1P) reserves sufficient to operate the power station at full load for the 10 year term of the Power Purchase Agreement with Country Energy.
Electricity produced from the gas fired power station will have significantly lower carbon emissions than the coal fired electricity. The economic benefit of the lower greenhouse gas emissions will be then paid to the company from the sale of NSW Gas Abatement Certificates (NGACs).
The Narrabri Power Project will comprise a gas gathering system to bring gas by 150mm buried steel pipeline from the Coonarah Gas Field to the power station site at Wilga Park, 12 kilometres west of Narrabri. The power station will comprise one megawatt, containerised Jenbacher gas reciprocating engines and generator sets to be provided and operated under a lease/purchase arrangement by GE Energy Rentals.