A $10 billion gas project has the green light to begun construction in Queensland’s Darling and Western Downs regions.
Arrow Energy recently received approval for 14 petroleum leases, covering an estimated 2500 sq km between Dalby and Wandoan.
The project involves using existing QGC processing facilities, pipelines and other infrastructure to transport gas to domestic and export facilities. The gas field is predicted to yield 5000 petajoules of new gas over the next 27 years, and 240 petajoules annually during peak production starting from the year 2026.
“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,” State Mines Minister Anthony Lynham said in a public statement.
The project comes after Arrow’s $850 million expansion of its Daandine and Tipton fields back in the 2016/17 period.
Arrow CEO Mingyang Qian welcomed the approval, describing it as a “positive step”.
“The approval of these petroleum leases is a critical milestone in Arrow, delivering 5 trillion cubic feet of gas into the market,” he said.
The Queensland Resources Council (QRC) applauded the approval of the project, saying it is a welcome addition to the local economy.
“The go ahead for Arrow Energy’s project in the Surat is a significant commitment of confidence in the Queensland gas industry and a sizeable investment from the private sector,” QRC Chief Executive Ian Macfarlane said in a public statement. “We cannot take this success for granted, the Arrow Energy project is a welcome addition to our state’s diverse resources sector, but we must ensure more projects are developed across our full range of commodities, including gas, coal, metals and other minerals.”
Construction is expected to start soon and end in the year 2020. The 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.