Shell and PetroChina, Arrow’s shareholders, announced the FID on Friday and Arrow CEO Cecile Wake said the decision demonstrated the company’s confidence in the project, despite current low oil prices and the COVID-19 pandemic causing other major projects to be deferred.
“This significant investment comes at a critical time and will cement Arrow’s position as a major producer of natural gas on the east coast,” said Ms Wake.
“Arrow recognises the current uncertainty caused by COVID-19 and oil-price volatility and will ensure that its development plans retain sufficient flexibility to manage these evolving challenges while bringing more gas to market.
“The decision to sanction phase one of the Surat Gas Project and commence construction this year is good for Queensland.
“It will mean more jobs, more opportunities for local companies and other economic benefits for regional Queensland, which has been home to Arrow for more than 20 years.”
Phase one will consist of more than 600 wells in Queensland’s Surat and Bowen basins where Arrow currently operates five gas fields, with the company aiming to deliver first gas in 2021.
Ms Wake said it was estimated 200 construction jobs would be created during phase one of SGP and a further 800 construction and operating roles over its 27-year life.
“The Surat Gas Project is the first large-scale CSG project in Australia to be underpinned by a significant infrastructure collaboration and gas sales agreement, together with a suite of supporting agreements, which have been put in place between Arrow and the Shell-operated QGC joint venture,” she said.
“This agreement enables the use of capacity in QGC’s existing gas and water processing, treatment and transportation infrastructure, reducing the impacts on landholders, communities and the environment and ensuring that more gas can be economically developed.”
Arrow expects to produce about 5 TCF of natural gas over the life of the SGP.
For more information visit the Arrow Energy website.
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