AsianOil: Arrow moves ahead with second phase of Australia's Surat gas project

Shell and PetroChina’s joint venture Arrow Energy has decided to move ahead with the second phase of development of the Surat gas project in Queensland, Australia, the UK major said last week.

Under this second phase, Surat’s gas will flow to the Shell-operated QCLNG LNG facility on Curtis Island, helping to fulfil long-term contracts and supply domestic customers. The project aims to recover most of the gas in the Surat basin, estimated to total 140bn cubic metres. 

At peak, the phase will deliver 22,400 barrels of oil equivalent per day (boepd) of production. The project will involve drilling up to 450 wells, the construction of a field compression station and 27 km of new pipeline, and upgrades to roads and other infrastructure. First gas is expected in 2026.

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