Arrow Energy, the joint venture between Shell and PetroChina that is sitting on the east coast’s biggest undeveloped gas resource, is spending up to $850 million boosting supply into the tight gas market as shortages loom.
And it appears a bigger plan to develop its Surat Basin ground is finally taking shape, seven years after the pair bought ASX-listed Arrow for $3 billion with visions of exporting the vast Queensland coal-seam gas reserves.
…“Technical and commercial work is under way on a third, larger proposed brownfield expansion in the Surat Basin,” an Arrow spokeswoman said.
“Pending shareholder approval, this project (together with the already approved $350m spend) would almost double Arrow’s gas production in the Surat for domestic and export markets.”
It is believed the brownfield expansion of the Tipton field — which could boost Surat Basin production from about 60 terajoules a day to 120 terajoules, would cost about $500m up front — is targeting 2019 first production and is waiting for sign-off from Shell and PetroChina.
This is a joke. Arrow has nearly 10kPj of reserves. 120 per day is perhaps 40Pj per year into a shortage of 160Pj according to Credit Suisse. This is drip feeding the market to maintain discriminatory pricing.
Apply new “use it or lose it” rules plus domestic reservation to the Arrow reserve:
