OIL AND GAS
$10 billion Surat Gas Project set to pump gas into the market
In April 2020, Arrow Energy sanctioned the first phase of the $10 billion Surat Gas Project (SGP), a world-scale coal seam gas (CSG) project aimed at commercialising the majority of the company’s gas reserves in the Surat Basin in Southern Queensland, approximately five trillion cubic feet (TCF). The project is expected to run for 27 years, and will include up to 2,500 new wells and create about 1,000 jobs across its lifetime. With the first phase of the project now underway, there are a number of opportunities for manufactures and suppliers of pumping and associated equipment to take hold of.
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rrow Energy has operated in the Surat Basin for more than 15 years. The sanction decision follows the final investment decision (FID) for phase one of the SGP from its shareholders, PetroChina and Shell. Arrow Energy CEO, Cecile Wake, said, “The decisions by PetroChina, Shell and Arrow demonstrate commitment to and confidence in Queensland and the Australian market at a time of global economic turmoil from COVID-19 and against the backdrop of sustained low oil prices. “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. “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. “This agreement enables the use of capacity in QGC’s existing gas and water processing, treatment and transportation infrastructure, reducing the impacts on pump industry | Winter 2021 | Issue 36
landholders, communities and the environment and ensuring that more gas can be economically developed.”
Phase one works underway
Phase one works were scheduled to begin in the second half of 2020 with a focus on an expansion between Arrow Energy’s current operational areas at Daandine and Tipton, with expansion to take place later to the north and south of Daandine, down to Tipton. Initial works will bring around 300TJ/ day of gas to the market. The first phase will see more than 600 wells drilled and the construction of inlet processing facilities (IPFs) at Shell-QGC operated David and Harry Field Compression Stations. The IPFs will enable the company to supply gas from its operational fields under the gas sales agreement, with the David IPF to be the first delivery point online from late 2021. Arrow Energy will continue to use its existing gas compression facilities at Daandine and Tipton, with upgrades to the Tipton Central Gas Processing Facility to take place. The company will use its existing water treatment facilities, which will be improved through upgrades to the Tipton and
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