Arrow Energy has launched the front-end engineering design (FEED) phase for a major expansion of its Tipton gas project, 30km west of Dalby in the Surat Basin.
Arrow Energy chief executive officer Qian Mingyang said the project involved a significant upgrade of existing facilities, and would more than double production capacity from Tipton to more than 80 TJ/d.
“This project continues the development of the Arrow resource, which will see more gas in the market,” Mr Qian said.
The project followed a recent $600 million-plus investment by Arrow in its Surat Basin infrastructure, comprising the $500 million Daandine expansion project (commissioned in late 2016) and commencement of a Produce the Limit (PtL) project earlier this year to expand capacity at its Daandine and Tipton fields.
The Tipton expansion FEED contract would be awarded within weeks through the company’s engineering master service agreement, Arrow said.
Mr Qian said that after FEED was complete, Shareholders would consider a Final Investment Decision.
“The planned expansion of Arrow’s Tipton operations is expected to involve 90 new wells in the initial phase and another 180 wells over the next 25 years – along with new gathering lines, an upgraded water treatment facility and four new compressors,” Mr Qian said.
“The PtL project is well under way, and will enable Arrow to run existing compression facilities to their maximum design limits, increasing our current Surat production by up to 30 per cent.”
Together, the expansion projects (Daandine, PtL and Tipton) would bring Arrow’s Surat gas production to more than 170 TJ/d, for domestic and export use. .
Mr Qian said that in addition to these expansion activities, collaboration with industry proponents would be important in bringing Arrow’s sizeable gas reserves into the east coast gas market.
“I am expecting that we will reach agreement on a path to market for the majority of Arrow’s Surat Basin gas reserves later this year,” he said.