Arrow Energy Surat Gas Project North expansion to start in late 2024

Known as SGP North, the development will bring more than 130 terajoules of additional gas to market per day for long-term contract and domestic customers.

The expansion is part of the SGP development, which will have the capability to produce more than 4000 petajoules of gas over the life of the project.

Construction on SGP North is scheduled to begin later this year, with infrastructure to include up to 450 new gas production wells, a new field compression station, 27km of pipeline, and road and infrastructure upgrades over two phases.

Arrow CEO Zhengxin Peng said he was pleased to receive sanction by its shareholders for SGP North, with first gas targeted for 2026.

“At a time when more gas is needed for homes, businesses and industries, the SGP North development will solidify Arrow’s position as a major producer of natural gas on the east coast,” Mr Peng said.

“Natural gas is an important part of the energy transition, and the expansion demonstrates the faith our shareholders have in our ability to manage and deliver large-scale projects.”

Mr Peng said the Miles region would benefit from up to 400 jobs to be created from the development.

“It means more jobs, more opportunities for local contractors and suppliers, including Indigenous businesses, and other economic benefits for the local community, including upgrades to local roads.

“Like the first phase of the SGP, we will be minimising our environmental footprint and impact to the community through our agreement with Shell QGC, which enables us to use existing facilities and infrastructure.”

The SGP North development will include:

• up to 450 production wells and associated gathering
• road and telecommunication upgrades.
• a 121 TJ/d four-compressor field compression station
• a 27km medium-pressure pipeline, connecting the new field compression station to QGC’s Bellevue central processing plant
• low-pressure gas connection to QGC’s McNulty field compression station
• water and brine infrastructure expansion and upgrades

About the Surat Gas Project

Located in Queensland’s Surat Basin, Arrow Energy has been safely, responsibly and reliably producing the natural gas required for a clean energy future since 2004.

The Surat Gas Project (SGP), underpinned by a 27-year gas sales agreement with Shell QGC, is expected to comprise up to 2500 gas wells and produce 4000 petajoules of gas.

Over the course of the project, we expect to create around 1000 jobs and are investing tens of millions of dollars each year in local road upgrades.

Every year, our social and community investment totals around $2 million as we partner with local communities to share the benefits of Arrow’s presence.