Arrow Energy’s Surat Gas Project
Arrow Energy has agreed a major gas supply deal to bring its significant Surat gas reserves to market.
The deal is one of the largest gas supply agreements on Australia’s east coast, and will develop the vast majority of Arrow’s gas in the Surat Basin over 27 years. It will create around 1000 new jobs, including 800 during peak construction and around 200 ongoing operational roles.
This is a significant step forward for Arrow’s Surat Gas Project, and offers long-awaited infrastructure collaboration in the CSG industry to minimise impact.
The deal allows Arrow to collaborate with the Shell-operated QCLNG joint venture on infrastructure, reducing the impacts of CSG development for landholders and communities.
Collaboration will see the use of existing QGC-operated gas compression, processing and transmission infrastructure, as well as water treatment facilities. For example, up to eight planned central gas processing facilities and two major water treatment facilities may not be built. The number of wells required for the project will be around 2,500 – a 60% reduction from original estimates in Arrow’s Surat Gas Project Environmental Impact Statement (EIS).
Because the deal provides an existing path to market for Arrow’s gas, the proposed Arrow Surat Pipeline is no longer required.
Arrow will continue to invest in industry-leading innovation and technologies to reduce its impacts throughout the development.
Development across the Surat
Phased development activity will commence with an expansion of Arrow’s Tipton fields, near Dalby, and then progress to Daandine and Kogan areas.
From 2021, development will expand into new gas fields south of Dalby, and in the northern section of Arrow’s tenure north-east of Miles.
The next phase, from 2024, will see development of an area north of Kogan.
Front-end engineering design (FEED) for Arrow’s Tipton Expansion has commenced, and construction is expected to begin in the first half of 2019 near Arrow’s existing Tipton infrastructure.
Peak construction activity for new areas will be around 2022 and peak gas production around 2027.
Detailed plans including contracting opportunities are still being identified, but Arrow will continue to share information with landholders and the business community as it becomes available.