The Surat Gas Project (SGP) in Queensland is set for a major expansion, with an additional 30 terajoules of gas per day – enough energy to power almost one million homes daily – due to be added to the network.
Arrow Energy’s planned expansion, called the Surat Gas Project North (SGP North), comprises up to 450 new gas production wells, a new field compression station, 27km of pipeline, and road and infrastructure upgrades over two phases.
Construction is slated to begin later this year, with first gas targeted for 2026.
The expansion is part of the greater SGP development, which will have the capability to produce more than 4000 petajoules of gas and create roughly 1000 jobs over the course of its life.
SGP is underpinned by a 27-year gas sales agreement with Shell.
Arrow Energy chief executive officer Zhengxin Peng said the expansion will help shore up the east coast gas market.
“At a time when more gas is needed for homes, businesses and industries, the SGP North development will solidify Arrow’s position as a major producer of natural gas on the east coast,” Peng said.
“Natural gas is an important part of the energy transition, and the expansion demonstrates the faith our shareholders have in our ability to manage and deliver large-scale projects.”
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