Arrow Energy sanctions 143-well Surat Gas Project Central phase

Arrow Energy, the joint venture equally owned by Shell and PetroChina, will develop the next phase of its Surat Gas Project in Queensland, Australia. The phase comprises 143 backfill wells and is expected to contribute around 79 million cu ft/day of gas at peak production.

Gas from the project will supply domestic customers and long-term export contracts under an existing 27-year gas sales agreement between Arrow Energy and the Shell QGC-operated QCLNG joint venture, which exports LNG from a facility on Curtis Island near Gladstone. The production wells will source natural gas from coal seams in the Surat Basin.

Shell and PetroChina formed the Arrow Energy joint venture in 2010, and the 27-year gas sales agreement with QCLNG was signed in 2017. First gas from Surat Gas Project Central is expected in 2028.