The WA-based utility Alinta will transport more than four petajoules (PJ) of coal bed methane (CBM) to the Comalco refinery each year, starting upon completion of the refinery in the third quarter of this year.

Alinta chief executive officer Bob Browning said the signing signifies the commencement of the first contract for firm haulage on the Queensland Gas Pipeline (QGP) since 1997 and comes less than six weeks after Alinta acquired the asset.

The refinery will be one of the largest non-power generation gas consumers in Queensland. The agreement will generate at least $28 million additional cash flow for Alinta over its ten-year term.

This agreement has involved Alinta installing a new delivery point and associated facilities on the QGP adjacent to the Comalco refinery.

Energex retail general manager Andrew Kremor said the agreement with Alinta was the culmination of five years of consultation with Comalco.

“Since diversifying into gas with the purchase of Allgas Energy in 1998, Energex has

experienced considerable success in sustained growth of its gas business with substantial sales achieved along the eastern seaboard,” Kremor said.

Energex will supply the gas from its contracted CBM reserves located along the QGP, which runs from gas fields near Roma, west of Brisbane, to Gladstone and Rockhampton.