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Arrow enters FEED for substantial Surat asset expansion

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Arrow Energy today announced that it will undertake the front-end engineering design (FEED) phase for a proposed major expansion of its Tipton gas project 30km west of Dalby in Queensland’s Surat Basin.

The project followed a recent $600M+ investment by Arrow in its Surat Basin infrastructure, comprising the $500M Daandine expansion project (commissioned in late 2016) and commencement of a $100M+ Produce the Limit (PtL) project earlier this year, to expand capacity at its Daandine and Tipton fields.

Arrow Energy CEO Qian Mingyang said the project involved a significant upgrade of existing facilities, and would more than double production capacity from Tipton to more than 80 TJ/d. Together, the expansion projects (Daandine, PtL and Tipton) would bring Arrow’s Surat gas production to more than 170 TJ/d, for both domestic and export use.

“This project continues the development of the Arrow resource which will see more gas in the market,” Mr Qian said. He said that in addition to these expansion activities, collaboration with industry proponents would be important in bringing Arrow’s sizeable gas reserves into the east coast gas market. “I am expecting that we will reach agreement on a path to market for the majority of Arrow’s Surat Basin gas reserves later this year.”

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