BAKU, Azerbaijan, August 15. Arrow Energy, a joint venture equally owned by Shell and PetroChina, has announced plans to proceed with Phase 2 of its Surat Gas Project in Queensland, Australia, Trend reports.
Gas from this phase of the project will be directed to the Shell-operated QCLNG (Queensland Curtis Liquefied Natural Gas) facility on Curtis Island, near Gladstone. This move is in line with a 27-year gas sales agreement between Arrow Energy and QGC, ensuring supply for both long-term contracts and domestic customers. At peak production, Phase 2 is expected to contribute approximately 22,400 barrels of oil equivalent per day, or 130 million standard cubic feet per day.
“Moving forward with Phase 2 of the Surat Gas Project reaffirms our commitment to increasing gas availability in the market,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “The QCLNG facility, which celebrated its 1000th cargo last year, plays a crucial role as a gas supplier for Australia and the wider region. This investment will help us sustain and expand this vital energy source, offering a lower-emissions alternative to coal.”
During its 2023 Capital Markets Day, Shell highlighted its strategy to secure additional feedgas for its LNG facilities through backfill projects aimed at increasing shareholder value. Phase 2 of the Surat Gas Project will deliver gas volumes to be processed at the QCLNG facility and will involve the construction of up to 450 production wells, a field compression station, 27 kilometers of new pipeline, and various road and infrastructure upgrades.
First gas production from Phase 2 is expected in 2026.