Electricity in Queensland
Arrow is one of the largest integrated energy companies in Australia with five gas producing projects and ownership of one, and interests in two other gas-fired power stations generating power for Queenslanders.
Arrow has been producing gas in Queensland since 2004. We currently provide approximately 20 per cent of the state’s gas supply, of which a large proportion is used to generate electricity.
Arrow has agreements to sell gas to a number of companies including Stanwell Corporation, Incitec Pivot Limited and Alinta Energy for their Braemar Power Station. Further, the Daandine, Townsville and Braemar 2 Power Stations all use our coal seam gas (CSG) as feedstock. This provides the company with access to 600 megawatts (MW) of power generation capacity – enough to power nearly 400,000 homes each year.
Download a map of Arrow's current domestic gas activities here.
Braemar 2 Power Station
The 450 MW Braemar 2 Power Station was commissioned in 2009 and built at a cost of $550m. In July 2011, Arrow took full ownership and operational control of the plant from ERM Power Ltd. The power station, located approximately 40km southwest of Dalby in south east Queensland, currently provides three to four per cent of Queensland’s electricity.
It is fired by CSG from Arrow’s Daandine and Tipton West gas fields in the Surat Basin and is the second largest gas fired power station in Queensland. Arrow is currently supplying gas to the Braemar 2 Power Station at a rate of approximately 15 petajoules per annum (PJ/a), which is enough to power more than 200,000 households each year.
The power station operates as a peak and shoulder period generator that aims to dispatch electricity during periods of higher electricity demand and capture the associated higher electricity prices during that time.
Daandine Power Station
The 30 MW Daandine Power Station is located 40km west of Dalby in south east Queensland. It was constructed within close proximity to Arrow’s Daandine CSG field and is supplied with gas from this field at low pressure. First electricity was generated in December 2006.
Arrow has the rights to 100 per cent of the generation revenue from the Daandine Power Station through a tolling agreement with APA Group. This agreement allows Arrow to sell the electricity off-take to Essential Energy (formerly the New South Wales government-owned retailer Country Energy), under a long-term power purchase agreement. Arrow supplies 2.2 PJ/year of gas to the Daandine Power Station.
Townsville Power Station
Arrow and AGL Energy share the rights to electricity generated from the 240 MW Townsville Power Station (120 MW each) under a long-term Power Purchase agreement with RATCH Australia Corporation Limited (formerly Transfield Services Infrastructure Fund). RATCH owns and operates the power station.
CSG for the power station is supplied wholly from the Moranbah Gas Project Joint Venture and transported to Townsville via the North Queensland Gas Pipeline.