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qgc sells first berwyndale south gas QGC sells first Berwyndale South gas


Monday, May 08, 2006

QUEENSLAND Gas Company has sold the first gas from its Berwyndale South gas field to Queensland Government-owned power generator CS Energy.



Monitoring gas flows at Berwyndale South. © Queensland Gas Co

QGC managing director Richard Cottee said commissioning gas was delivered to the Roma-to-Brisbane pipeline on Saturday at the full contract rate that foundation customer CS Energy had agreed to under terms of its contract with QGC.

Cottee said QGC expected to sell more than 200,000 gigajoules of gas this month, rising to 325,000GJ in June – the monthly contract volume under the 4 petajoule per annum contract with CS Energy.

Base contracts with CS Energy, the Braemar power station and Incitec Pivot totalling a minimum of 15.4PJ per annum will generate at least $28 million a year in revenue in the first full 12 months that all three contracts are on-stream.

If the options are exercised, annual revenue should increase to around $40 million, Cottee said in a statement to the Australian Stock Exchange.

Berwyndale South now has four wells flowing at more than 1.2 million cubic feet a day, including Berwyndale South #60, which flowed at a new field record of 1.9 million cubic feet a day.

"These results have great economic significance," Cottee said. "Around a third of our wells are free-flowing and don't require pumping.

"We believed that a higher percentage of our wells will be free-flowing as we increase the production from the gas field, and we're already getting flow rates of around double those of other comparable producers in the region."


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