Arrow Energy, a joint venture equally owned by Shell and PetroChina, has unveiled plans to proceed with Phase 2 of its Surat Gas Project in Queensland, Australia. This expansion is set to enhance the supply of natural gas to both domestic and international markets, reinforcing Australia’s position as a key energy provider.
The gas produced from this project will be transported to the Shell-operated Queensland Curtis LNG facility on Curtis Island, near Gladstone. This development supports a long-standing 27-year gas sales agreement between Arrow Energy and QGC, ensuring a steady flow of gas for liquefaction and export, as well as for domestic consumption. At its peak, Phase 2 is projected to deliver approximately 22,400 barrels of oil equivalent per day, or around 130 million standard cubic feet of gas per day.
Zoë Yujnovich, Shell’s Integrated gas and upstream director, highlighted the significance of this expansion, stating, “Embarking on Phase 2 of the Surat Gas Project with Arrow is part of our commitment to bring more gas to market. QCLNG marked its 1000th cargo at the end of last year, reflecting its significance as a gas supplier for Australia and the region. This investment will enable us to sustain and grow this important, secure energy source that offers a lower emissions alternative to options like coal.”
This move aligns with Shell’s strategic objectives outlined during its Capital Markets Day in 2023, where the company emphasised the importance of securing additional feedgas for its existing LNG facilities. The backfill projects, including Phase 2 of the Surat Gas Project, are designed to increase shareholder value by ensuring continued and enhanced production.
Phase 2 will involve the development of up to 450 new production wells, the construction of a field compression station, the installation of 27 kilometres of new pipeline, and the upgrade of existing roads and infrastructure. These efforts are all geared toward ensuring that the QCLNG infrastructure can handle the increased gas volumes.
The first gas from this phase is expected to be delivered in 2026, marking a significant milestone in Arrow Energy’s ongoing efforts to contribute to Australia’s energy landscape and global energy security.
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