Santos Limited has made its first venture into coal seam gas production with the opening of its $60 million Scotia gas project in central Queensland to supply the Swanbank Power Station, near Ipswich.
It is Santos' first fully-owned and operated coal seam gas project.
The new project will progressively increase Queensland's total gas supply by up to 10 per cent.
Capable of delivering 26.5 terajoules of gas a day, the Scotia processing plant will supply 120 petajoules of gas, from Bowen Basin coals, under contract for up to 15 years to the power station.
The plant will be equipped with two newly installed combined cycle gas-fired turbines at Swanbank, making it Queensland's largest gas-fired power station.