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Government greenlights $10b gas project

Arrow Energy, a joint venture between Shell and PetroChina, has been granted a total of 14 petroleum leases between Dalby and Wandoan for the southwest Queensland project, covering approximately 2,500 km².

The project is estimated to bring in 5,000 PJ of gas to market over 27 years and Queensland Premier Annastacia Palaszczuk said the economic benefits would be significant.

“The Surat Gas Project will create up to 800 construction jobs and 200 ongoing operational jobs, as well as millions of dollars in business opportunities for local suppliers,” she said.

“Currently scheduled to be operational in 2020, the project will produce gas for LNG for export and for domestic users.

“This is the biggest resources project since 2011 when the LNG projects were sanctioned.”

Construction on the project is expected to begin later this year, although Arrow is yet to make a final investment decision.

In December 2017, the company signed a 27-year gas supply deal with the Queensland Curtis LNG development to commercialise the majority of the company’s gas reserves in the Surat Basin.

Almost 25,000 km² has been released in the state for gas exploration since early 2017; however, only a third of it is for the domestic market.

For more information visit the Arrow Energy website.

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