The signing of the agreement means that all contractual arrangements related to the proposed power station have now been completed. Pending environmental approvals, Alinta plans to start construction of the power station in October 2007.
The two companies were able to conclude negotiations after finalizing alternative gas supplies for the power station, following the decision in June by Alinta’s original suppliers, Beach Petroleum Limited and Anzon Australia Limited, to defer the development of the Basker, Manta and Gummy gas fields.
The Tamar Valley Power Station project comprises two separate power plants: a 200MW combined cycle gas-fired power station and a 180MW open cycle gas-fired power station. The 180MW station would allow back-up electricity to be provided when required.
The Tamar Valley Power Station is a very significant project for Tasmania and will provide a long-term, clean and efficient source of electricity for the community, commented Jim Hennessy, executive general manager of Alinta Energy. This is the first private sector generation in Tasmania and will create up to 300 jobs during construction and will employ about 22 permanent staff when operational.