Volatile oil prices have resulted in Arrow Energy continuing to postpone development plans for its Bowen Basin tenements.
An Arrow spokesperson told The Australian Pipeliner that the company is undertaking additional work to underpin an economically-sound investment proposal to shareholders on both the Bowen Gas Project and Arrow Bowen Pipeline.
The project includes a 430 km, 1,067 mm diameter buried high-pressure steel pipeline to transport coal seam gas from the Bowen Basin to a gas hub 22 km north west of Gladstone.
“This work is on-going, as such, the impacts on project schedule are unknown,” the spokesperson said.
Arrow moved into the front-end engineering design (FEED) phase for the Arrow Bowen Pipeline in December 2014, awarding the contract to engineering services firm WorleyParsons.
FEED for the Arrow Bowen Pipeline was originally scheduled for completion in December 2015, despite the decision to postpone its upstream Bowen Basin development plans.
The company initially confirmed the delay in November last year, citing production challenges, resulting from deeper and tighter coals when compared with the Surat Basin.
Technical difficulties, as well as an environment of rising costs and falling global oil prices, have contributed to the ongoing delay.