Australia: Arrow Energy Ups Its Domestic Gas Market Stake

Arrow Energy will today take over the operations of the Braemar 2 power station, near Dalby, following its acquisition last week of the remaining 25 per cent ownership, reinforcing the company’s commitment to provide gas to the domestic market.

Braemar 2, built at a cost of $550m and commissioned in 2009, is fired by coal seam gas (CSG) from Arrow’s Daandine and Tipton West gas fields in the Surat Basin. It is the second biggest gas fired power station in Queensland.

The 450 MW power station currently provides three to four per cent of Queensland’s electricity – powering homes and businesses across the State.

“While Arrow has been expanding CSG exploration to deliver a major CSG to liquefied natural gas project to meet international demand for cleaner energy, this acquisition shows that providing cleaner energy to Queensland at the same time is of critical importance to the company ,” Arrow Energy CEO Andrew Faulkner said.

Arrow has been producing gas for the domestic market for almost a decade and currently provides approximately 20 per cent of Queensland’s gas supply of which a large proportion is converted into electricity.

“Braemar 2 continued to successfully operate through the extreme flooding events in the Surat Basin earlier this year, which ensured on-going electricity generation to the State,” said Mr Faulkner.

ERM Power led the development of Braemar 2, was the project and construction manager and managed and operated the plant until last week when it sold its remaining equity interest to Arrow.

Arrow Energy Pty Ltd

Arrow Energy is one of the largest integrated energy companies in Australia with five gas producing projects in the Surat and Bowen Basins and interests in three gas-fired power stations. Arrow currently provides approximately 20 per cent of Queensland’s gas and electric needs

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Source:Arrow Energy , July 4, 2011;