Power generation
Wilga Park Power Station (ESG 65% & Santos 35%)
The Wilga Park Power Station is an integrated and strategic component of ESG’s project commercialisation and development strategy. The power station will be utilised to allow monetisation of production test and/or ramp-up gas that would otherwise have to be vented or flared.
Generation capacity
The Power Station currently offers total generation capacity of 4 MW, based on four one-megawatt generation sets. During 2008/09 an additional 3 MW generation set will be installed at Wilga Park which will bring total generation capacity to 7 MW. It is intended that additional units will be added to the Power Station to progressively increase generation capacity to 40 MW.
Fuel supply
Currently, conventional gas from PPL 3 is being used to fuel the Power Station. The conventional gas reservoirs are substantially depleted and it is planned that use of conventional gas will be progressively supplemented and replaced by use of CSG (ESG 65% & Santos 35%) at Wilga Park from mid 2009.
The Power Station offers the opportunity for the Narrabri Coal Seam Gas Joint Venture (ESG 65% & Santos 35%) to monetise ramp-up gas and reduce / eliminate fugitive gas releases.
Power off-take arrangements
The Power Station sells electricity to Country Energy under a power purchase agreement (“PPA”).
Under the PPA, the Power Station is referred to as the Narrabri Gas Generation Project (“NGGP”). The NGGP is registered as a non-market, non-scheduled generator with NEMMCO.
Power Station Land
The Power Station Land comprises approximately 500 acres of which around five acres will be used to accommodate the Wilga Park Power Station (after expansion to 40 MW). The land on which the Power Station has been built is freehold owned by the Narrabri Coal Seam Gas Joint Venture and can potentially be used for activities including gas processing and water treatment.
