Bow Energy Chief Executive Officer John De Stefani said that feedstock for the new power plant would be sourced from the Blackwater CSG Field, and the plant will generate electricity to supply the national grid for domestic and industrial users.
The company estimates that the plant will require approximately 2 petajoules per annum (PJ/a) of gas to run, which represents around five per cent of the available 3P reserves of gas currently defined.
“A further reserve increase from the deeper Burgrove coal measures is anticipated later this year,”? Mr De Stefani said.
Bow is currently targeting 250 PJ of certified 2P gas reserves from the Blackwater field by the end of 2010, having already exceeded its 2010 3P target of 850 PJ of gas-in-place.
Clarke Energy has been chosen to construct the project, using GE Jenbacher gas engines.
Central Highlands Regional Council Mayor Peter Maguire also said that the project – expected to be completed in early 2011 – would be a major boost for jobs and economic growth in the Blackwater and Emerald region.
Bow has previously said it is investigating the feasibility of constructing an approximately 50 km pipeline from the Blackwater and Don Juan CSG fields to a point along Arrow Energy and AGL Energy‘s proposed Central Queensland Gas Pipeline. The company is also looking into the development of a 140 km pipeline joining the Blackwater field to the existing Queensland Gas Pipeline at Moura.
Bow has also announced a further reserve upgrade of 454 PJ for its Blackwater Coal Seam Gas (CSG) Field located in ATP 1025P in the Bowen Basin, Queensland.
The upgrade has increased Bow’s total net 3P reserves to 1,447 PJ.
The net 3P certified reserves of 1,447 PJ exceeds the company’s original 2009 end target of 750 PJ of 3P gas reserves by 93 per cent and its 2010 end target of 850 PJ of 3P gas reserves for the Blackwater CSG field by 58 per cent.