The two companies have signed a Deed of Cooperation to investigate utilising Eastern Star Gas' Coonarah Gasfield to build a power station near the NSW town of Narrabri.
The Coonarah Gasfield, in PEL 238 in the Gunnedah Basin, has independently accredited proved and probable reserves of 11.3 petajoules.
Country Energy's network covers 72% of NSW and supplies over 750,000 customers in both regional and metropolitan areas.
Under the terms of the deal, the two companies will cooperate with each other on an exclusive basis on any designated project to establish feasibility and power purchase agreements (PPA's).
