Australia: Arrow Issues Key LNG Project Tender

In a significant milestone for the Arrow LNG Project, Arrow Energy has invited four parties to tender for the design and construction of Arrow’s upstream gas infrastructure in the Bowen and Surat basins in Queensland.

The parties have been invited to tender for the Front End Engineering Design (FEED ) for surface infrastructure including well head facilities, gas compressors as well as gathering and water treatment systems.

The contract also includes the potential to roll over into subsequent Engineering, Procurement and Construction Management services (EPcM), subject to commercial attractiveness and a positive final investment decision around the end of 2013.

Arrow Chief Executive Andrew Faulkner said the invitation to tender for the FEED and EPcM represented a key milestone for Arrow’s LNG project.

“Arrow remains in a strong position to realise the potential of our significant gas reserves and this tender is the next major step in progressing our LNG project,” Mr Faulkner said.

“The Upstream FEED and EPcM contract will be one of the single largest contracts in the Arrow LNG Project.”

Arrow’s LNG Project involves taking gas from future wells in both the Surat and Bowen Basins in south east and central Queensland, to Gladstone via two gas pipelines and across to Curtis Island for processing and export.

Mr Faulkner said Arrow remained on track with its LNG project, enjoying the continued strong backing of its shareholders Royal Dutch Shell and PetroChina.

The outcome of the FEED and EPcM tender is expected to be announced later this year.

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LNG World News Staff, May 17, 2012