Shell and PetroChina expand Surat coal-seam gas project in Australia
Shell and PetroChina announced on Monday that they have decided to expand their Surat coal-seam gas project in Queensland. This comes amid calls from the British oil giant for increased investment to boost the local energy supply.
The decision was made at a moment when executives in the industry have been pressing for government action to bring investments back that were halted by state interventions to reduce energy prices and increase domestic supply.
The Australian energy market operator, as well as the competition watchdog, have asked oil and gas firms to invest more in order to increase supply on a market that is becoming increasingly constrained.
In a separate press release, Arrow Energy, the joint venture between Shell & PetroChina that operates the project, stated that it will produce more than 130 Terajoules per day of additional gas.
The first phase began in 2020, and now the project is in production.
Shell has not provided a cost estimate for its second phase of development. However, it said that the company expects to contribute approximately 22,400 barrels equivalent of oil per day when production reaches peak levels. First gas is expected in 2026.
Arrow CEO Zhengxin Peng said, "At a moment when homes, businesses, and industries need more gas, the SGP North project will solidify Arrow’s position as the major natural gas producer on the East Coast."
Arrow has large undeveloped reserves of gas on the East Coast, which are facing a shortage and higher prices. (Reporting and editing by Rashmi aich and Subhranshu sahu in Bengaluru and Rishav chatterjee from Bengaluru.
(source: Reuters)
