Gas from the project will flow to Shell’s QCLNG liquefied natural gas (LNG) plant on Curtis Island near Gladstone to fulfil long-term contracts and supply domestic customers. This is part of an existing 27-year gas sales agreement between Arrow Energy and QGC. Phase 2 is expected to contribute to peak production of around 22,400 boe/d (or 130 million ft3/d).

“Starting Phase 2 of the Surat Gas Project with Arrow is part of our commitment to bring more gas to market,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “QCLNG booked its 1,000th cargo late last year, reflecting its importance as a gas supplier to Australia and the region. This investment will enable us to maintain and grow this important, secure energy source that provides a lower-emissions alternative to options such as coal.”

During its 2023 Capital Markets Day, Shell said it would secure continued supply of raw gas to its existing LNG assets through additional backfill projects to increase value for shareholders. Phase 2 will deliver volumes to be processed through the QCLNG infrastructure and will include up to 450 production wells, a field compression station, 27km of new pipeline, and road and infrastructure improvements.

The first gas is expected in 2026.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12082024/shell-invests-in-phase-2-of-surat-gas-project-in-australia/