Project To Boost Gas Supply to Shell’s QGC LNG Plant

Project To Boost Gas Supply to Shell’s QGC LNG Plant

Shell Australia, which operates QGC, including one of the three LNG plants on Curtis Island, recently took a final investment decision on the first phase of Arrow Energy’s Surat Gas Project.

While Arrow’s reserves are located in the Surat Basin in south-west Queensland, the announcement does have implications for Shell’s QGC LNG plant on Curtis Island. The development will increase the pool of gas available to both domestic and export markets, including the amount of gas available for processing in Gladstone using the existing processing trains and other infrastructure.

Gas from Arrow will provide more supply to both Australian domestic customers. Shell’s QGC business supplied 65% of the Queensland domestic gas market in 2019.

The decision will provide up to 90 billion cubic feet per year (95 PJs/yr) of new gas to market at peak production – the Australian East Coast gas market is approximately 600 PJ/yr.

“QGC has reached strong and stable production since its start-up in December 2015, and Arrow has the strong technical capability to develop the Surat Basin fields innovatively and efficiently,” said Shell Australia Chairman Tony Nunan. “QGC supplied 16 percent of the demand in the Australian east coast domestic gas market in 2019 and celebrated its 500th LNG cargo.”

Construction of the project will commence this year, with first gas sales expected in 2021.