In joint venture with PetroChina (Il Sole 24 Ore Radiocor) - London, 12 Aug - Anglo-Dutch energy company Shell said its Arrow Energy 50/50 joint venture with PetroChina has announced plans to develop Phase 2 of the Surat Gas Project in Queensland, Australia.

The gas from the project will flow to the QCLNG liquefied natural gas (LNG) facility on Curtis Island, near Gladstone, to meet long-term contracts and supply domestic customers.

QCLNG is a Shell-operated joint venture between Shell (73.75%), CNOOC (25%), and MidOcean Energy (1.25%) and supplied 15% of demand on Australia's east coast in 2023.

This is part of an existing 27-year gas sales agreement between Arrow Energy and QGC. Phase 2 is expected to contribute around 22,400 barrels of oil equivalent per day at peak production.

Phase 2 will deliver volumes to be processed through QCLNG infrastructure and comprise up to 450 production wells, a field compression station, 27 kilometers of new pipeline and road and infrastructure upgrades.

First gas is expected in 2026.

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(RADIOCOR) 12-08-24 14:52:36 (0290) 5 NNNN