Oil and Gas News

Arrow awards Valmec with Surat gas contract

Valmec has secured early works on the first phase of Arrow Energy’s Surat gas project, located in south-west Queensland.

The company’s initial contract with Arrow is to deliver critical water treatment facilities, valued at $16 million, and forms part of the first phase of works at the major gas development.

The turnkey project involves procurement, construction and commissioning works at the Daandine facility.

Valmec managing director Steve Dropulich said the Arrow Energy contract is another great example of the company’s cross-capability with its expertise in water infrastructure being applied to one of its established gas energy clients.

“Clients have recognised the efficiencies and cost savings associated with engaging early with a specialist contractor such as Valmec that has multi-discipline expertise and prides itself on providing a one-stop solution,” Dropulich said.

“We are pleased to be able to continue our long standing relationship with Arrow with this award recognising that our previous works have paved the way for us to showcase our diversified capabilities on this project.”

Dropulich added that the Surat gas project is a significant undertaking by Arrow that has a life of more than 25 years and will develop around 5TCF of natural gas.

“Valmec is well positioned to continue to deliver further integrated and lower cost of ownership solutions to Arrow on this strategic project,” he said.

Arrow currently operates five gas fields in the Surat and Bowen Basins in southern and central Queensland. It has supplied coal seam gas commercially from the Bowen Basin since 2004 and from the Surat Basin since 2006.

In April the Surat gas project joint venture partner Shell Australia took a final investment decision (FID) to develop the first phase of the $10 billion project.

The project is expected to deliver up to 90 billion cubic feet per year of gas to market at peak production, which will flow to the Shell-operated QGC liquefaction plant to be sold locally and exported to international markets.

Construction of the project will commence in 2020, with first gas sales expected in 2021.

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