Yeah ESG ticking off all the boxes,
Impressive agreement, ESG soon to be a producer by the looks of it, Casey has won my confidence as a good MD Grace, his actions speak far louder than most MD's words
Narrabri Coal Seam Gas Secures Early Access to NSW Gas Market
Eastern Star Gas Limited (ASX: ESG) together with its joint venture
partner, Gastar Exploration Ltd (AMEX: GST & TSX: YGA.TO) is pleased
to announce it has entered into a Heads of Agreement with the APA
Group (APA), owner of the Central West and Moomba Sydney Gas
Pipelines. Under the HoA, options for early delivery of coal seam gas
from the Narrabri area into the NSW gas market are to be
investigated.
Mr David Casey, Managing Director of ESG said “we are going to work
with APA to develop arrangements that it is envisaged will involve
construction of a new pipeline lateral to connect the Narrabri coal
seam gas project into APA’s existing gas transmission pipeline
system”.
“By making use of existing infrastructure, early market access can be
secured whilst complimenting later large-scale gas supply
arrangements envisaged by our existing MoU’s with Macquarie
Generation and Babcock & Brown” Mr Casey said.
“Securing early market access is of particular interest since, on
present projections, gas production rates from the multi-lateral pilot
production wells to be drilled by the joint venture later this year will,
by around mid 2009, be in excess of what can be used in the Wilga
Park Power Station, even with the proposed expansion of the power
station. Having direct access to the NSW market will allow other
opportunities to be pursued”.
Initially gas will be delivered to market via APA’s Central West
Pipeline with APA’s NSW pipeline system subsequently expanded as
gas production and markets grow. By matching gas production,
pipeline and market requirements in this manner, capital efficiency is
maximised and favourable gas transportation tariffs realised.
Mr Casey commented that “the Narrabri coal seam gas joint venture is
delighted to be working with the APA Group, which is uniquely well
placed to provide gas transportation services at an early opporunity”.