Arrow Energy, a joint venture between Shell and PetroChina, has launched Phase 2 of the Surat Gas Project in Queensland, Australia.
The gas produced from this phase will be sent to the QCLNG facility on Curtis Island, operated by Shell. This development aligns with a 27-year gas sales agreement between Arrow Energy and Shell’s QGC business, aimed at meeting long-term contractual obligations and serving domestic customers.
Phase 2 is expected to deliver around 22,400 barrels of oil equivalent per day (bopd), which translates to approximately 130 million standard cubic feet per day. This expansion is part of the broader Surat Gas Project, which aims to produce over 4,000 PJ of gas over its lifetime from up to 2,500 gas wells.
Construction is scheduled to start later this year, including the drilling of up to 450 new production wells. The project will also involve significant infrastructure upgrades, such as a new field compression station, pipelines connecting this station to the Bellevue central processing plant, and improvements to water and brine facilities.
Arrow Energy, established in 2010 by Shell and PetroChina, previously received approval for the first phase of the Surat Gas Project in April 2020. The second phase will supply gas to QCLNG’s infrastructure, with the first gas expected by 2026.
QCLNG, a Shell-led joint venture with CNOOC and MidOcean Energy, supplied 15% of the gas demand on Australia’s east coast in 2023. The project will extract natural gas from coal seams in the Surat Basin.
Arrow Energy CEO Zhengxin Peng stated, “Natural gas plays a crucial role in the energy transition, and this expansion reflects our shareholders’ confidence in our capability to manage and deliver large-scale projects. It will generate more jobs, create opportunities for local contractors and suppliers, including indigenous businesses, and provide economic benefits to the local community, including road upgrades.”
Peng also emphasized the commitment to minimizing environmental impact, noting that the project will use existing facilities and infrastructure in collaboration with Shell QGC.
