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Barossa Gas Project: Learn more

First Gas to Mt Isa

First Gas to Mt Isa

On behalf of the South West Queensland Unit Producers (Producers), Santos announces that sales of gas have commenced to MIM Holdings Limited for generation of power at the Mica Creek Power Station at Mount Isa.

The gas is being supplied under a 15 year contract (announced in July 1996) which provides for a base supply of 15 petajoules per annum.

The contract has involved the Producers investing approximately $200 million in upgrading the Ballera Gas Plant, other field development work in South West Queensland and their 30% interest in the 840 km pipeline built by AGL to transport the gas from Ballera to Mt Isa.

The gas sold under the contract will increase annual Queensland gas consumption by over 30% to around 62 petajoules per annum.

Commenting on the commencement of sales, the Managing Director of Santos, Mr Ross Adler said:

This is a milestone for Queensland. The decision by MIM to purchase the gas will ensure a long-term supply of competitively priced energy.

Commencement of sales is also a milestone for the Producers. It follows the commencement of sales of Cooper Basin gas from South West Queensland to Brisbane in 1997. The Cooper Basin is now established as the major source of gas supply for Queensland.

The interests of the South West Queensland Producers are as follows:

Santos Group 60.0625%

Delhi Petroleum Pty Ltd 23.2000%

Boral Energy Resources Ltd 16.5000%

Oil Company of Australia Ltd 0.2375%