Arrow Sanctions First Phase of $10B SGP
Arrow Energy has sanctioned the start of the first phase of its Surat Gas Project (SGP) in southern Queensland.
The company said the sanction decision followed announcements from Arrow’s shareholders, PetroChina and Shell, of a final investment decision for phase one of the SGP. Construction at the development is set to begin this year, Arrow revealed.
Over the full 27-year life of the SGP, Arrow expects to develop around five trillion cubic feet of natural gas. An initial 200 construction jobs will be created during the first phase of the project, with a further 800 construction and operating roles anticipated over the project’s full life, Arrow’s CEO, Cecil Wake, outlined.
“[Friday’s] decisions by PetroChina, Shell and Arrow demonstrate commitment to and confidence in Queensland and the Australian market at a time of global economic turmoil from Covid-19 and against the backdrop of sustained low oil prices,” Wake said in a company statement.
“This significant investment comes at a critical time and will cement Arrow’s position as a major producer of natural gas on the east coast,” Wake added.
The Arrow CEO went on to say that the company recognizes the current uncertainty caused by Covid-19 and oil-price volatility and added that it will ensure its development plans retain “sufficient flexibility to manage these evolving challenges while bringing more gas to market”.
Arrow got the government go ahead for the project in February 2019. In a statement released at the time, Queensland government highlighted that the SGP was a $10 billion development.
A joint venture between Shell (50 percent) and PetroChina (50 percent), Arrow is the developer and operator of the SGP. The integrated coal seam gas company currently operates five gas fields in the Surat and Bowen basins in southern and central Queensland and produces the equivalent of more than 40 percent of Queensland’s total domestic gas demand.
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