Arrow Energy has announced it will move into the front-end engineering design(FEED) phase for its proposed Bowen pipeline, another key milestone in its Bowen Gas Project.
The pipeline, set to be up to 500km in length, should supply gas from the Bowen Basin to liquefaction facilities at Gladstone.
Arrow CEO Andrew Faulkner said the FEED contract had been awarded to engineering services firm WorleyParsons, which would create a preliminary design for the pipeline.
“This pipeline FEED contract is another important step towards commercialising Arrow’s significant gas reserves in the Bowen Basin,” Mr Faulkner said.
Mr Faulkner said Arrow had been safely and sustainably developing coal seam gas from the Bowen Basin since 2000 and supplying it commercially since 2004 to the Townsville power station, as well as local and industrial users in Townsville and Moranbah regions.
He said development options for Arrow’s Surat Basin gas reserves, in southern Queensland near Dalby, were also being progressed.
Operating in Queensland for more than 14 years, Arrow now provides almost 20 per cent of the state’s gas supply, most of which is used to generate electricity.