Bowen Basin CSG Project to Proceed to FEED Phase

A coal-seam gas joint venture owned by Royal Dutch Shell and PetroChina reported Monday that it would proceed with the front-end engineering design (FEED) phase for its proposed Bowen Gas Project in Queensland, Australia.

Developed from the year 2000, the Bowen Basin has been supplying coal-seam gas (CSG) from the Bowen Basin since 2004. The proposed Bowen Gas Project will see the joint venture, Arrow Energy, extract gas from its petroleum tenures and will represent a major expansion in CSG production volumes

The Bowen Gas Project lies adjacent to Arrow's existing Moranbah Gas Project – one of the oldest and largest gas fields in Australia.

Arrow CEO Andrew Faulkner said the decision was a "critical milestone" in progressing the development of significant gas reserves in the Bowen Basin.

"The decision to proceed with FEED demonstrates the attractiveness of our Bowen Basin reserves," he said.

"This design stage represents an important step forward for Arrow's Bowen Gas Project and I expect FEED work will take around 12 months to complete."

Arrow has five gas-producing projects in the Surat and Bowen basins, and provides about 20 percent of Queensland's gas supply. The company said that it is working to meet growing international demand for cleaner-burning fuels through a gas supply-for-LNG project.

Faulkner added that development options for Arrow's Surat Basin gas reserves were being progressed and that collaboration discussions with third parties were continuing to identify the best option for monetizing Arrow's gas reserves in both basins.


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