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Energy Developments West Kimberley Power Project Update

20 Dec 2006

Energy Developments today provided an update on its West Kimberley Power Project.

At the Broome power station transfer of town load from the existing Horizon Power (HP) power station to the new ENE power station recommenced in early December. During the process it was found that further fine tuning of the control system that allows the power station to follow the minute-to-minute swings of electricity load was required.
HP also experienced some network faults that have been the result of moving customers from one power source to another.

Over the past two weeks HP and ENE have carried out power station testing and tuning off line to minimise any impact on customers. To avoid inconvenience to HP customers and better manage resource requirements over the Christmas and New Year period, HP and ENE have agreed to commence load transfer in January 2008.

The parties have agreed that ENE will supply and be paid for base load power by HP under the broad commercial terms of the Power Purchase Agreement (PPA) over the Christmas and New Year Period.

Load transfer and commissioning of the Derby, Fitzroy Crossing and Halls Creek power stations will be conducted in January and February 2008 as previously announced.
Managing Director Greg Pritchard said that significant progress had been made at the Broome power station and that ENE is looking forward to the full operational phase of the project commencing in the New Year.

“Energy Developments believes that the short deferral of formal load transfer and PPA testing at Broome is a sensible and pragmatic solution in the best interests of all stakeholders given the time of year. We will continue to work with Horizon Power to deliver this milestone LNG based project and to provide clean and reliable power to the West Kimberley towns”, he said.

The LNG plant and LNG road transport fleet has been producing and delivering LNG to meet the demand of the Broome power station operation. LNG has been delivered to all the LNG fuelled power stations in readiness for commissioning and operation of the smaller power stations.

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