Australia: Arrow to Expand Bowen Basin Operations

Central Queensland natural gas which is already being used to generate electricity for Queensland could soon be part of the cleaner energy future globally. Arrow Energy is gearing up for a major expansion of its Bowen Basin operations as its Moranbah gas fields continue to help Arrow feed about 20 per cent of Queensland’s domestic gas supply.

Arrow has been producing coal seam gas (CSG) in the Bowen since 2004 and is seeking to expand production on its exploration tenements around Moranbah and from Glenden in the north to Blackwater in the south.

Arrow CEO Andrew Faulkner said Arrow was planning up to 7000 new gas wells in a staged development over the next 35-40 years.

“The Bowen Gas Project will supply gas via a high-pressure pipeline to Gladstone where it would be processed before being sent across the Gladstone Harbour to Curtis Island for export,” Mr Faulkner said.

“This Bowen project area is a crucial part of Arrow’s LNG project which consists of two gas areas in the Bowen and Surat basins linked by two major pipelines and a liquefied natural gas (LNG) Plant on Curtis Island.”

Mr Faulkner said Arrow was in a strong position and remained on track to submit a final investment decision on its multi-billion dollar LNG project to shareholders around end 2013.

“CSG is not new to the Bowen Basin, we’ve been producing it for many years from our Moranbah Gas Project which was the first and one of the largest gas producing gas fields in Australia.

“This gas field helps keep the lights on in Moranbah and Townsville via their respective power stations but also keeps mineral refining facilities in north Queensland and ammonium nitrate plans running as well.

“The Bowen Gas Project is the next exciting phase of Arrow’s development and we’re consulting, involving and listening to communities as part of that process.

“Our community information sessions in Central Queensland are important because they are part of Arrow’s commitment to keep people informed and we hear community feedback firsthand.

“The last formal sessions in June helped give more landholders certainty and straight, face-to-face answers to their questions, as well allow Arrow to hear feedback.”

Mr Faulkner said Arrow was demonstrating coexistence not only with landholders and communities but with coal companies who both shared overlapping land tenure across most of the Bowen Basin.

“Arrow is really leading the industry in this respect by working together with coal companies to establish a framework to guide a simple way forward with often complex land arrangements.

“We have 18 co-development agreements in place which underpin good working relationships with many coal companies and some which have been in place for many years.”

The draft terms of reference for the Bowen Gas Project Environmental Impact Statement (EIS), which will guide environmental studies, are open for public review and comment until Tuesday, August 14.

The EIS is a comprehensive study of all environmental, economic and social impacts and benefits arising from the Bowen Basin expansion.

Arrow will provide an EIS to the Queensland Department of Environment and Heritage Protection (DEHP) that outlines the project’s scope, potential impacts and mitigation strategies, to inform a decision on the project.

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LNG World News Staff, August 10, 2012