Joint venture partner Shell Australia has taken a final investment decision (FID) to develop the first phase of Arrow Energy’s $10 billion Surat gas project in Queensland.
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.
The Surat gas project will bring an extra 5000 petajoules of gas to market over 27 years, including about 270 terrajoules a day (TJ/day) during phase one’s peak production, towards a whole-of-project peak of 700TJ/day.
Arrow Energy chief executive officer Cecile Wake said the company, with its 50:50 shareholders PetroChina and Shell, have worked with the QGC joint venture to put a complex and innovate arrangement to bring natural gas to the market in place.
“The Arrow joint venture partners’ decision not to build another two trains on Curtis Island provided the opportunity to create this alternative pathway to market for the resource,” Wetselaar said.
Construction of the project is set to commence in 2020, with first gas sales expected in 2021.
In addition, the project is expected to create an initial 200 new construction jobs during its first phase and a further 800 operation and construction jobs over its life, with construction expected to start later this year and first gas forecast to flow from 2021.
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