Surat gas project gets green light


The biggest new resources project in Queensland in eight years – Arrow Energy’s $10 billion Surat Gas Project – has the go-ahead to generate up to 1000 jobs.

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.

Premier Annastacia Palaszczuk said the Surat Gas Project will create up to 800 construction jobs and 200 ongoing operational jobs, as well as millions of dollars in business opportunities for local suppliers.

“Currently scheduled to be operational in 2020, the project will produce gas for LNG for export and for domestic users,” Ms Palaszczuk said.

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“This is the biggest resources project since 2011 when the LNG projects were sanctioned.”

The leases cover around 2,500km² 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.

Queensland 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.

“This approach has two major benefits: it will get gas to the market faster and it significantly reduces the project footprint and the potential impact on local communities and the environment,” Dr Lynham said.

The Surat Gas Project follows the expansion of Arrow’s Daandine and Tipton fields during 2016/17, at a cost of $850 million.

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