Arrow Energy Announces Commencement of Surat Gas Project Phase Two

Background

Arrow Energy, a joint venture between Shell and PetroChina, has announced the commencement of Phase Two of its Surat Gas Project (SGP).

Key Points

• The SGP targets coal seams in Queensland's Surat Basin.
• Phase Two will supply gas to Shell's QCLNG infrastructure.
• The gas will flow to Shell's QCLNG facility on Curtis Island to meet long-term contracts and domestic demand.
• The project is underpinned by a 27-year gas sales agreement with Shell QGC.
• The first gas from Phase Two is expected by 2026.

Project Details

The SGP is located in Queensland's Surat Basin. Phase Two of the project involves the construction of gas-gathering infrastructure, including pipelines and compression facilities.

The gas from Phase Two will be routed to Shell's QCLNG facility on Curtis Island, where it will be liquefied and shipped to global markets.

Economic Impact

The SGP is expected to create hundreds of jobs during construction and operation.

The project is also expected to generate significant economic benefits for Queensland, including royalties and taxes.

Environmental Considerations

Arrow Energy says it is committed to operating the SGP in an environmentally responsible manner.

The company has implemented a range of measures to minimize the project's environmental impact, including:

• Using low-emission technologies
• Protecting biodiversity
• Minimizing water use

Conclusion

The commencement of Phase Two of the Surat Gas Project is a significant milestone for Arrow Energy and for Queensland.

The project is expected to provide a reliable and affordable supply of gas to domestic and international markets, while also creating jobs and generating economic benefits for the state.