CENTRAL Petroleum announced the Dingo Gas project pipeline and plant has been successfully commissioned ahead of schedule and 10 per cent below budget.
In a statement, Central said the project was completed after the necessary regulatory approvals to operate were obtained.
The completion also satisfies the company’s requirements to have a physical connection to the Owens Springs power station ready in order to deliver gas under a gas sales agreement.
Physical Dingo gas sales will commence as soon as the customer’s engineering and tie-in to the company’s delivery point at Owen Springs power station has been completed, the company said.
Central managing director Richard Cottee said the commissioning had occurred less than 12 months ago after Central acquired the gas assets from Magellan Petroleum Australia.
“Strategically it was important to Central for its future cash flows to be underpinned by stable, inflation-indexed, Australian dollar denominated domestic gas contracts,” he said.
“The completion of the Dingo Gas project is an important milestone in the implementation of this strategy enabling Central to supply the domestic gas market from two distinct established conventional fields centred near Alice Springs,” he said.
“Our employment strategy is important to underpin the long-term sustainability of Central’s operations in the Northern Territory. Work practices that facilitate and encourage families and indigenous people to live and work locally helps build skills, wealth and a better future for our whole local community in which we live and operate,” Mr Cottee said.