ANZ INFRASTRUCTURE SERVICES FUND JOINS QGC IN CHINCHILLA POWER...

ANZ INFRASTRUCTURE SERVICES FUND JOINS QGC IN CHINCHILLA POWER STATION
DEVELOPMENT
Energy Infrastructure Trust (EIT), managed by ANZ Infrastructure Services Ltd has committed to the
development of the Chinchilla Power Station, to be sited on the Berwyndale South Gasfield currently
being developed by Queensland Gas Company Limited (QGC).
EIT’s immediate commitment comprises the funding to complete the design and commercial agreements
and the completion of finance. The feasibility of the project has already been established, and initial
power generation tentatively proposed for 2008/9.
Announcing this today, QGC Managing Director Richard Cottee said: “We are delighted to be working in
joint venture with ANZ Infrastructure Services on this project which EIT will own, with QGC supplying the
gas.
”EIT’s decision is an important step towards the major expansion and diversification of markets for QGC’s
coal seam gas.”
“Developing electricity generating plants at the source of QGC’s coal seam gas reserves, and supplying
the national electricity grid, is a key plank in our growth strategy.”
“The planned Chinchilla power station will be the first power station in Australia to be located at the
source of the gas. As a result, it will be one of the country’s lowest cost producers of electricity.”
“Supplying gas directly to an on-site power station provides significant cost savings through eliminating
the need for dehumidification and high pressure compression of the gas, as well as the need for a
pipeline.”
“To meet anticipated growth in demand, we are now planning for a power station of up to 200 MW,
almost four times the original planned generating capacity” Mr Cottee said.
“At 200 MW, the power station will almost double QGC gas sales either under contract or through power
generation from 15.4 PJ to approximately 30 PJ per annum. It will add considerably to QGC’s capacity
as a supplier to the national electricity grid.”
In April 2006, QGC is scheduled to begin gas production from the Berwyndale South Gasfield to supply
both CS Energy and the Braemar Power Station and in September 2007 to begin production from the
Argyle Field to supply Incitec Pivot.
QGC is also engaged in a major expansion through acquisition. On 20 January QGC announced an offer
to acquire all the ordinary shares in Sydney Gas Limited, which would combine the very significant coal
seam gas reserves of the Sydney Basin with its existing Surat Basin projects.