Eastern Star Gas (ESG) has announced that a Memorandum of Understanding (MoU) has been assigned to National Power for supply of gas to a proposed new gas-fuelled power station in northern New South Wales.
ESG originally entered into the MoU with Babcock & Brown Australia Infrastructure (now Prime Infrastructure) in November 2007. It was based on a long-term supply of up to 40 petajoules per annum (PJ/a) of coal seam gas (CSG) from the Narrabri CSG Project for use in the power station.
National Power has a selective asset purchase agreement with Prime Infrastructure covering certain jointly-developed generating projects.
ESG Managing Director David Casey welcomed National Power’s involvement in the proposed northern NSW gas power station and associated gas pipeline.
He said “National Power’s involvement brings a refocused approach to the proposed power station project which has unfortunately been delayed following the collapse of Babcock & Brown.”