Sydney Gas ups production at Camden - Breaking News - Business - Breaking News

Sydney Gas Ltd has reported a slight increase in production from its Camden gas project in New South Wales as it continues to look for ways to improve productivity at the operation.
Camden - a 50/50 joint venture between Sydney Gas and operator The Australian Gas Light Company (AGL) - based in Sydney's south west is producing gas at an annual rate of 4.4 petajoules.
Total production in May reached 319,733 gigajoules, up two per cent on April, underpinning sales revenue of $1.2 million, up from $1.184 million in April.
Sydney Gas said the joint venture was continuing to develop methods to increase productivity of the second stage of development at Camden.
The second phase will take production up to 15 petajoules a year, representing eight per cent of the current gas consumption in NSW.
"Production is currently in ramp-up and the peak production level is anticipated to be achieved within the next three years," Sydney Gas said.
Under a gas sales agreement, the joint venture has a 10 year supply agreement to supply gas to AGL.
Earlier this month Sydney Gas announced a $50 million recapitalisation plan to fund the repayment of maturing convertible notes and meet its investment commitments.
The plan was originally designed to fend off a now-abandoned takeover bid from Queensland Gas Company.
Shares in Sydney Gas were steady on 28 cents at 1439 AEST while AGL shares had dropped eight cents to $17.92.
© 2006 AAP