Arrow announced this morning that it had received the 2007 nomination from Enertrade, whose gas requirements were expected to be 17.868 petajoules.

But Moranbah, which is Australia’s largest CSM project, is currently only producing 46 terajoules per day, equating to 16.79PJ per year.

Enertrade’s 2007 nomination was also 3PJ per annum greater than the nomination for the current contract year.

But Arrow chief executive Nick Davies said his company was “pleased” with the nomination, which he noted was about 0.9PJ or 5.5% higher than expectations.

“We are underway with our production drilling activities in advance of next year’s increased nomination,” he said.

Davies added that exploration activities were underway in other seams within the area, the results of which are expected to be known in the next few months.

In its 2007 nomination, Enertrade also forecast its likely gas requirements for the subsequent four contract years. It predicts it will need 18PJ in 2008, 18.90PJ in 2009, and 19.40PJ in both 2010 and 2011.

The Moranbah Gas project is held in equal partnership between AGL and Arrow, which is also the operator and has the sole exploration, operating, and marketing rights over all of the underlying exploration tenement area of ATP 364P in the northern Bowen Basin region.