The two companies have entered into a Memorandum of Understanding to evaluate the potential of the facility and, upon agreement from both parties, negotiate commercial terms of an agreement under which Clarke would install gas fired electricity generation to connect Galilee’s initial Glenaras ramp gas production to the grid.
Galilee Managing Director Peter Lansom said the agreement could allow commercialisation of gas from the project to occur before a final investment decision (FID) is made on a potential Jemena pipeline to fully develop the field.
“If we proceed with a project such as this then multiple benefits would be realised, including early cashflow, proof of concept for our first phase development which will be necessary prior to FID on the Jemena pipeline for the broader field development, important environmental advantages through the beneficial use of pilot production gas and flexibility to ultimately send power to and draw power from the grid,” he said.
Located in the Galilee Basin, the Glenaras Gas Project is a CSG development owned and operated by Galilee with a 100 per cent interest.
The company is expected to undertake a new drilling program in early April this year.
For more information visit the Galilee Energy website.
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