Some good news for Central Queensland with Arrow Energy today announcing it will proceed with the front-end engineering design (FEED) phase for its proposed Bowen Gas Project, located adjacent to the existing Moranbah Gas Project.
Arrow Energy CEO, Andrew Faulkner, said the decision was a critical milestone in progressing the development of the company’s significant Bowen Basin gas reserves.
“The decision to proceed with FEED demonstrates the attractiveness of our Bowen Basin reserves,” he said.
“This design stage represents an important step forward for Arrow’s Bowen Gas Project and I expect FEED work will take around 12 months to complete.”
Mr Faulkner said Arrow had been safely developing CSG from the Bowen Basin since 2000 and supplying it commercially since 2004.
The Bowen Gas Project will involve extracting gas from Arrow’s petroleum tenures and represents a major expansion in CSG production volumes.
The project covers an area extending from Glenden in the north to Blackwater in the south.
The Bowen Gas Project lies adjacent to Arrow’s existing Moranbah Gas Project (MGP), one of the oldest and largest (in acreage) gas fields in Australia, which has been producing CSG for the domestic market since 2004. The MGP is a 50/50 joint venture with AGL.
“Today’s announcement is a positive move for Arrow, for local communities and contractors,” Mr Faulkner said.
He said development options for Arrow’s Surat Basin gas reserves were being progressed, and that collaboration discussions with third parties were continuing, to identify the best option for monetising Arrow’s gas reserves in both the Surat and Bowen basins.