Arrow Energy Moves Ahead With FEED for Bowen Basin Gas Project

Queensland based Arrow Energy on Monday announced it would proceed with the front-end engineering design (FEED) phase for its proposed Bowen Gas Project.

The $70 million contract has been awarded to Clough AMEC joint venture. 

"This design stage represents an important step forward for Arrow's Bowen Gas Project and I expect FEED work will take around 12 months to complete,” Arrow Energy CEO, Andrew Faulkner, said.

Arrow has been developing coal seam gas (CSG) from the Bowen Basin since 2000 and supplying it commercially since 2004.

The Bowen Gas Project lies adjacent to Arrow's existing Moranbah Gas Project (MGP), one of the oldest and largest (in acreage) gas fields in Australia, which has been producing CSG for the domestic market since 2004. The MGP is a 50:50 joint venture with AGL.

The proposed project involves a major, staged expansion of Arrow's existing domestic CSG production in the Bowen Basin, to supply gas to the domestic market and for the production and export of liquefied natural gas (LNG).

Faulkner added that development options for Arrow's Surat Basin gas reserves were being progressed, and that collaboration discussions with third parties were continuing, to identify the best option for monetising Arrow's gas reserves in both the Surat and Bowen basins.

Arrow, an integrated CSG company, is owned by Shell and PetroChina which formed a 50:50 joint venture partnership to wholly acquire the company in August 2010.