Arrow Energy’s $10 billion Surat Gas Project has been granted approval for 14 petroleum leases between Dalby and Wandoan, which is tipped to bring an extra 5000 petajoules of gas to market over 27 years.
Queensland Premier Annastacia Palaszczuk said, “Currently scheduled to be operational in 2020, the project will produce gas for LNG for export and for domestic users.
“This is the biggest resources project since 2011 when the LNG projects were sanctioned.”
The leases cover around 2,500km² on blocks between Dalby and Chinchilla in the gas-rich Surat Basin, where major gas projects are already operated by Origin, Santos and QGC.
Construction is expected to start later this year with first gas forecast to flow from 2020.
Minister for Mines, Dr Anthony Lynham, said Arrow Energy 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,” Dr Lynham said.
Under Queensland’s regulatory regime, Arrow has met strict environmental, financial, and Native Title requirements, and is proceeding with binding land access compensation agreements with local landholders.
The Surat Gas Project follows the expansion of Arrow’s Daandine and Tipton fields during 2016/17, at a cost of $850 million.
Arrow CEO Mingyang Qian said, “The approval of these petroleum leases is a critical milestone in Arrow delivering 5 trillion cubic feet of gas into the market. It’s a positive step for Arrow and for Queensland.”