Daandine

The Queensland located Arrow Energy's Daandine power station's first electricity production occurred in December 2006 as a result of coal seam methane gas obtained from the nearby Daandine gas field. Prior to the opening of the new power station, ramp up gas from the Daandine field, had been sold to CS Energy.

Daandine Power Station Generates Power From Daandine Gas
The first electricity generated by the new 27.4 megawatt Arrow Energy power station at Dalby was sold into the New South wales power grid. The occasion was a milestone event in Arrow Energy becoming a bone fide supplier of electricity from its wholly owned Daandine gas field.

Daandine Gas Processed at Kogan North Facility
Coal seam gas from the Daandine field was delivered to the power station from the Kogan North gas processing and compression facility adjacent to the field. Arrow Energy has a gas tolling agreement with APA Group, Australia's largest natural gas infrastructure company with gas pipelines transporting natural gas in every state and territory on mainland Australia. An agreement that provides for Arrow Energy Limited's full operation and ownership of the Daandine power station.

Daandine Coal bed Gas Field has Large Resource
The Daandine coal seam gas field has a probable gas reserve of 24 billion cubic feet of methane gas and 337 billion cubic feet of possible gas reserves, according to figures certified by independent consultants, Netherland, Sewell and Associates. Around 30 billion cubic feet of the gas will be supplied to the Daandine power station. The electricity generated is sold under a long term power purchase agreement with Essential Energy, the former energy retailer, Country Energy, owned by the New South Wales Government. The Daandine coal bed methane gas field was Arrow Energy Limited's third gas producing field, the other two at the time being Kogan North and Moranbah. Gas from the company fourth field Tipton West was the next field to come on line followed by Stratheden.

Arrow Energy Expanding Gas Exploration in Surat Basin
Arrow Energy are continuing to expand its Queensland Surat Basin operations by undertaking a major coal seam gas exploration, development and production program extending from Dalby to Wandoan and from Goondiwindi to Millmerran.

Daandine Coal Seam gas is Naturally Occurring
Coal seam gas (CSG) is naturally occurring gas that has become trapped in coal seams under the ground by ground and water pressure. It is most usually methane gas. The methane gas is found in open fractures between coal seams as well as inside the pores of the coal itself. Coal seams then become storage places for both water and gas with the water being under intense pressure from the weight of the rock sitting above it. This natural occurrence hold the gas in place but when the water pressure is reduced the gas is released. When a well is drilled down into the coal seam water pressure is reduced and water is slowly pumped from the coal seam, this process allows the gas to flow to the surface via the well that has been drilled.

Most Arrow Energy coal seam gas wells are less than 700 metres deep although they are drilled to a greater depth when necessary. When the well is drilled it becomes the only way the water and gas can reach the surface. The water is separated from the gas while still below the surface and transferred to a collection point where it is treated. The gas is piped to a processing facility where it is dried and compressed before being fed into pipelines for commercial distribution.