Eneabba Gas extends gas swap MOU with Verve

21/11/2007 - 13:50

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West Perth-based Eneabba Gas Ltd has extended its gas swap arrangements with Verve Energy for another 12 months, the company has announced.

West Perth-based Eneabba Gas Ltd has extended its gas swap arrangements with Verve Energy for another 12 months, the company has announced.

Under the deal, Verve Energy transport and use the Eneabba gas until the start-up of the Centauri 1 power station.

In recognition for this commercial flexibility, Verve Energy will support EGL's access to the SWIS network through the use of unused capacity at its Mungarra Power Station connection point.

 

 

The full text of an Eneabba announcement is pasted below

Mid West power station developer Eneabba Gas Limited (ASX: ENB) via its 100% subsidiary Eneabba Energy Pty Ltd ("EEPL") today announced that it had extended its gas swap arrangements with Verve Energy for another 12 months until 31 December 2008.

In addition Verve Energy had agreed to a connection from the Mungarra power station directly to the proposed Centauri 1 power station and that system studies were currently being undertaken by Western Power to assess the connection to the SWIS. This arrangement will ensure extra security of power supply to the Mid West region.

Verve Energy's MD, Shirley In't Veld said: "We welcome this continuing arrangement and MoU with EEPL, which will assist and strengthen the delivery of energy into the Mid West.

This MoU also assists the flexibility of gas supply for Verve Energy in particular with the period over the summer months, when peak gas supply is crucial for the summer loads".

Eneabba's Managing Director, Mark Babidge said that the past month had seen Eneabba Gas make major progress in completing its plans to develop the Centauri 1 power station and supply power into the growing Mid West industrial sector.

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