ARROW Energy continues to progress its upstream development of coal seam gas infrastructure despite not having an LNG plant to send it to.
The Shell and PetroChina subsidiary said it would move to the front-end engineering and design (FEED) of its Bowen Basin pipeline to Curtis Island.
No price was put on the development of the pipeline but others from the Surat Basin to Curtis Island have cost at least $1 billion and QCGs parent BG Group sold its Surat Basin pipeline last week to the APA Group for $6 billion.Arrow has already started FEED on its Bowen Basin gas field operations.
Arrow CEO Andrew Faulkner said the FEED contract had been awarded to engineering services firm WorleyParsons, which would produce a preliminary design for the pipeline.This pipeline FEED contract is another important step towards commercialising Arrows significant gas reserves in the Bowen Basin, Mr Faulkner said.
The proposed pipeline, up to 500km, is a key piece of infrastructure in Arrows plans to bring gas from the Bowen Basin to market.
Mr Faulkner said Arrow had been safely and sustainably developing coal seam gas fromthe Bowen Basin since 2000 and supplying it commercially since 2004 to the Townsville power station, as well as local and industrial users in Townsville and Moranbah regions.He said development options for Arrows Surat Basin gas reserves, in southern Queensland near Dalby, were also being progressed.