Arrow to supply gas for Queensland LNG plant

Coal seam methane company Arrow Energy NL, Brisbane, has signed an agreement to supply gas from its Daandine CSM field in southeast Queensland to use as feedstock for a proposed mini-LNG plant.

Apr 11th, 2007

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Apr. 11 -- Coal seam methane company Arrow Energy NL, Brisbane, has signed an agreement to supply gas from its Daandine CSM field in southeast Queensland to use as feedstock for a proposed mini-LNG plant. The plant will be built on land Arrow owns at Daandine.

The agreement, signed with Liquegas Energy, a part of the Norwegian oil technology services company AGR Group, is for the supply of an initial 1.86 bcf/year of gas for 15 years beginning in first half 2009.

Both companies want to finalize a gas sales agreement within the next month.

The LNG produced will be marketed in southern Queensland and northern New South Wales, mostly for LPG replacement fuel and as diesel for long-haul trucking.

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