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The partners signed a letter of intent (LOI) for the two projects, near Dalby and Kogan) on Tuesday.
Arrow said: “The LOI anticipates a development commitment on Arrow’s generation projects in the Dalby / Kogan region within the next few months, with a commissioning date in the 2nd or 3rd quarter of 2005.
“The Dalby/Kogan generation projects are well advanced, with a preferred generation supplier/constructor/operator selected and the requisite grid connection application lodged with the network operator.”
The two projects will be capable of generating 27.4MW of electricity for sale into the National Electricity Market grid with gas sourced from the Tipton West gas field where Arrow and Comet Ridge have 80/20 equity.
The deal also provides, separately, for a supply of gas by Arrow to Country Energy from as early as mid 2006, and an additional generation project in the northern New South Wales region, with a view to commissioning in 2006/07.
