Oil and Gas News

Arrow overhauls Surat gas project plans

The Arrow Energy joint venture is proposing to drill an additional 280 wells and construct a 440km pipeline as part of the Surat gas project in south-west Queensland.

Arrow, which is a 50-50 joint venture of Shell Australia and PetroChina, submitted original plans to drill six wells last year.

However, the Queensland Department of Environment and Science opened a public consultation for a much larger campaign on Monday.

Outlined in the document, the application will expand the proponent’s existing coal seam gas activities and add an additional 280 wells, a 440km pipeline and other associated activities.

Arrow’s environmental authority (EA) has been assessed by the department as a major amendment as it proposes to increase the surface area of the existing activities by more than 10 per cent and involves a significant increase in the scale of the activity.

The application is open for public consultation until February 15, 2021.

In November last year, Arrow awarded Valmec with the first phase of the Surat gas project.

Valmec’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.

Arrow 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 last year, Shell Australia made a final investment decision (FID) to develop the first phase of the $10 billion project.