Arrow Energy has announced a 27-year agreement with the QCLNG joint venture, for one of the largest gas supply deals on Australia’s east coast.
The company says the deal will bring to market its significant gas reserves in southern Queensland which includes use of QGC-operated existing gas pipeline and related infrastructure which will commercialise most of Arrow’s gas reserves in the Surat Basin.
Arrow Energy CEO, Qian Mingyang, says the deal follows 18 months of detailed work on upstream collaboration agreements.
“The deal offers long-awaited infrastructure collaboration in the natural gas industry, creating better cost efficiencies and enabling us to bring this gas to market in a challenging investment climate.”
“Collaboration between the parties will see use of existing QGC-operated infrastructure such as gas compression, processing and transmission infrastructure as well as water transport and treatment facilities.
Utilising existing upstream infrastructure will reduce impacts to landholders and to communities.”
Mr Qian says the phased development activity would commence from the expansion of Arrow’s Tipton fields, near Dalby, and build to new development areas which would then come on line from around 2021.
The deal is expected to bring economic stimulus for local communities through flow-on employment and procurement opportunities, infrastructure contributions and investments in community programs.
Arrow Energy says it is also continuing to progress development options in the Bowen Basin in Central Queensland where it operates one of the oldest and geographically largest domestic gas projects (Moranbah Gas Project, owned jointly with AGL Energy) for electricity and industrial uses.
Mines Minister Dr Anthony Lynham today says he has “noted” Arrow Energy’s announcement.
“The Government will be interested in the company’s proposals for domestic gas supply and their production timeline. It’s important for industry and jobs that more gas gets to market.”