
courtesy of Arrow Energy
Arrow gave no timeframe for making a final investment decision on expanding the Surat Basin field in Queensland, but said it was looking at ways to get the gas into the east coast market, which faces shortages within the next two years.
The extra capacity of more than 17 PJ a year would help fill a shortfall of between 10 PJ and 54 PJ a year forecast by the Australian Energy Markets Operator (AEMO) in the east coast gas market between 2019 and 2024.
Arrow’s coal seam gas reserves in the Surat and Bowen basins are among the biggest undeveloped resources in eastern Australia. High costs and weak prices have until now held back such projects, but a rising local market amid worries about the shortage has companies looking anew at high-cost developments.
