Australia: Queensland government approves Arrow’s Surat gas project

Arrow Energy’s A$10 billion ($7 billion) Surat gas project has been given the green light by the Queensland government. 

Approval has been granted for 14 petroleum leases between Dalby and Wandoan that will bring an extra 5000 petajoules of gas to market over 27 years – including 240 petajoules per annum during peak production from 2026, a joint statement by the trade, natural resources, mines and energy ministries said.

Premier and minister for trade Annastacia Palaszczuk said, “currently scheduled to be operational in 2020, the project will produce gas for LNG for export and for domestic users.”

She added this is the biggest resources project since 2011 when the LNG projects were sanctioned.

The leases cover around 2,500 km² on blocks between Dalby and Chinchilla in the gas-rich Surat Basin, where major gas projects are already operated by Origin, Santos and QGC.

Construction is expected to start later this year with first gas forecast to flow from 2020.

Mines minister Anthony Lynham said Arrow Energy proposed to use nearby existing QGC infrastructure including processing facilities and pipelines to transport gas to domestic and export facilities.