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14 February 2008 Power and Water to ‘power through’ gas field supply transitionPower and Water Corporation confirmed today that due to the expected decline in gas supply from the Mereenie and Palm Valley gas fields, it is currently supplementing gas supplies with diesel for power generation at the Channel Island Power Station. The Darwin grid is currently only requiring about 15% diesel supplementation and while Channel Island usually runs on gas it is designed to run on ‘dual fuel’ if necessary. The amount of diesel being used to top up gas supplies is equal to approximately 30MW of the total capacity of 240 – 300MW to meet peak requirements. Generally, gas is used as much as possible as it is the cleanest of fuels available and more cost effective overall. General Manager, Generation, John Linton said “For the past 20 odd years the Mereenie and Palm Valley gas fields have supplied gas to generate electricity for the Territory and as they come to the end of their lifespan, variation in supply from these fields is expected and has been planned for. “A number of our power stations, in particular Channel Island, are designed to run on a combination of gas and diesel when necessary and can readily meet the peak loads we experience during the hotter months. “Power and Water has secured a new, 25 year gas supply via the Blacktip Field and supplies, via the Bonaparte Gas Line, are scheduled to come on line in late 2008, early 2009. “In the meantime, it’s business as usual and the cost of any periodic, increased use of diesel for peak generation is offset by less gas being purchased.” The gas sale agreement between the Power and Water Corporation and Eni Australia will see Power and Water purchasing around 750 petajoules of Blacktip Filed gas, which will be used to run power stations in all regional centres from Alice Springs to Darwin. Contact: |
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