Oil and Gas News

Arrow Energy secures CNJV for Surat work

Arrow Energy has awarded the CPECC Napcap joint venture (CNJV) a contract to continue providing construction services for its assets in the Surat and Bowen Basins, Queensland.

As part of the off-plot construction master services agreement (MSA), the joint venture will contract water and gas gathering pipelines and surface infrastructure related to Arrow’s gathering networkings in the Surat Basin.

In 2019 the company was awarded the off-plot construction management service contract for upcoming construction works in the Surat and Bowen Basins.

CNJV reported at the time that the appointment would support  requirement to expand its assets in the Surat and Bowen Basins and provide critical infrastructure required to bring more gas to market.

The works outlined in the contract in 2019 were for the construction of surface well pad infrastructure and gathering networks as required by Arrow Energy.

In April last year Arrow Energy’s joint venture partner Shell Australia took a final investment decision to develop the first phase of the $10 billion Surat Gas 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.

In January this year the joint venture proposed to drill an additional 280 wells and construct a 440km pipeline as part of the project, brining the total to 600 wells.

Arrow Energy chief executive officer Cecile Wake said the company, and 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 Surat gas project will bring an extra 5000 petajoules of gas to market over 27 years, including about 300 terrajoules a day (TJ/day) during phase one’s peak production, towards a whole-of-project peak of 700TJ/day.