Oz Arrow Energy Gets 14 Leases in Queensland
Coalbed methane producer, Arrow Energy, a joint venture between Shell and Chinese state PetroChina, has been granted 14 leases for its A$10bn (US$7.2bn) Surat gas project in Queensland, the state government said February 28.
“Approval has been granted for 14 petroleum leases between Dalby and Wandoan that will bring an extra 5000 petajoules of gas to market over 27 years – including 240 petajoules (6.4bn m3) per annum during peak production from 2026,” the government said.
The 14 leases cover around 2,500 km² on blocks between Dalby and Chinchilla in the gas-rich Surat basin. Queensland government said that the Surat gas project is expected to become operational in 2020 and will produce gas for domestic market as well for LNG exports. However, Shell and PetroChina have not yet approved the development plan. Queensland has three operational coalbed methane-based LNG exports projects by Origin, Santos and QGC.
“This is the biggest resources project since 2011 when the LNG projects were sanctioned,” Queensland premier Annastacia Palaszczuk said.
Mines minister Anthony Lynham said Arrow proposed to use nearby existing QGC infrastructure including processing facilities and pipelines to transport gas to domestic and export facilities.
“This approach has two major benefits: it will get gas to the market faster and it significantly reduces the project footprint and the potential impact on local communities and the environment,” Lynham said.
According to the government statement, Arrow has met strict environmental, financial, and Native Title requirements, and is proceeding with binding land access compensation agreements with local landholders.