Sydney Gas said that full development of the four-stage project will be completed over a three to four year period at an estimated cost of $100 million. It added that Westpac is working towards arranging an additional finance facility of up to $80 million, to enable it to complete the entire project in accordance with its business plan.

"The Westpac facility will enable Sydney Gas to drill new wells and build all associated gas gathering systems, compression and dehydration facilities, and a pipeline to sell gas into the nearby main gas transmission lines," said Sydney Gas chief executive officer Dr Butcher said.

"Design work has commenced on our second treatment plant and suppliers have been invited to tender for plant equipment and infrastructure. This plant is designed for significant throughput, as Sydney Gas is intent upon becoming a major supplier of natural gas into the New South Wales market."