Via the AFR:
Shell has finally given the green light for the first phase of the $10 billion development of the large Arrow Energy gas project in Queensland, shrugging off the slump in commodity prices and global cutbacks in spending across the oil and gas sector.
The project will open up 90 billion cubic feet a year of new gas, to be sold partly on the local east coast gas market and partly exported through the oil major’s QCLNG plant at Gladstone, Shell said on Friday.
It didn’t give the investment cost of the project, but Queensland energy mnister Anthony Lynham gave the total cost at $10 billion. It will involve more than 2500 new coal seam gas wells across its total life. Construction is to commence this year, ahead of the start-up of production in 2021.
Arrow gas is reasonably priced and big:
The issue is Arrow was only acquired by Shell (and thereby the gas cartel) in late 2015 when the gas monopoly price gouge crunch was already well underway and the ACCC was busy arguing more supply would solve the problem.
Now most of the gas will offshore instead of into cheap Australian energy, thanks to no gas reservation.
What a disastrous ACCC failure.
