Arrow Energy will expand its 27-year Surat Gas Project (SGP) to the Western Downs region to bring in 130TJ of additional gas per day.
The expansion is part of the SGP development – known as SGP North – which will have the capability to produce more than 4,000PJ of gas over the life of the project.
Construction on SGP North is scheduled to begin in late 2024, with infrastructure to include up to 450 new gas production wells, a new field compression station, 27km of pipeline, and road and infrastructure upgrades over two phases.
Arrow Energy CEO, Zhengxin Peng, said that he was pleased to receive sanction by its shareholders for SGP North, with first gas targeted for 2026.
“At a time when more gas is needed for homes, businesses and industries, the SGP North development will solidify Arrow’s position as a major producer of natural gas on the east coast,” Mr Peng said.
“Natural gas is an important part of the energy transition, and the expansion demonstrates the faith our shareholders have in our ability to manage and deliver large-scale projects.”
Mr Peng said the Miles region in Queensland’s Western Downs would benefit from up to 400 jobs to be created from the development.
“It means more jobs, more opportunities for local contractors and suppliers, including Indigenous businesses, and other economic benefits for the local community, including upgrades to local roads.
“Like the first phase of the SGP, we will be minimising our environmental footprint and impact to the community through our agreement with Shell QGC, which enables us to use existing facilities and infrastructure.”
The SGP North development will include:
- Up to 450 production wells and associated gathering
- Road and telecommunication upgrades
- A 121 TJ/d four-compressor field compression station
- A 27km medium-pressure pipeline, connecting the new field compression station to QGC’s Bellevue central processing plant
- Low-pressure gas connection to QGC’s Mcnulty field compression station
- Water and brine infrastructure expansion and upgrades
Featured image: An aerial view image of Miles, Queensland. Image credit: Arrow Energy.
