Shell, PetroChina JV eye first gas in 2026 from Surat Gas Project in Australia following “major” expansion plans
(WO) – Arrow Energy, a 50:50 joint venture between Shell and PetroChina, has announced a major expansion of its 27-year Surat Gas Project (SGP) to an area north-east of Miles in Queensland’s Western Downs.
Known as SGP North, the development will bring more than 130 terajoules of additional gas to market per day for long-term contract and domestic customers.
The expansion is part of the SGP development, which will have the capability to produce more than 4,000 petajoules of gas over the life of the project.
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
Arrow CEO Zhengxin Peng said 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,” 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.”
Peng said the Miles region 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 minimizing our environmental footprint and impact to the community through our agreement with Shell QGC, which enables us to use existing facilities and infrastructure.”
The Surat Gas Project (SGP), underpinned by a 27-year gas sales agreement with Shell QGC, is expected to comprise up to 2,500 gas wells and produce 4,000 petajoules of gas.
Over the course of the project, we expect to create around 1,000 jobs and are investing tens of millions of dollars each year in local road upgrades.
