May 31, 2018

Green light for $400m gas project

Green light for $400m gas project

Santos GLNG has announced plans to spend more than $400 million on the 137-well Arcadia gas project in the Central Highlands region.

The project, near Injune, is expected to create up to 300 construction jobs and local business opportunities.

Santos said the investment was in addition to the $900 million spending announcement for upstream developments in the Maranoa, Western Downs, Central Highlands and Banana regions of Queensland this year.

Santos managing director and chief executive officer Kevin Gallagher said the initial phase of the Arcadia development would deliver in excess of 75 TJ/day to the gas supply for the GLNG project.

It will involve drilling 137 new wells and constructing a 140km gas and water gathering network, two 4G
communication towers, a new compression station, a 4 ML per day water treatment plant, a 5 MW gas-fired power station, and associated roads and infrastructure.

Mr Gallagher said the decision to sanction the project followed a very successful 13-well pilot program.

Queensland Mines Minister Dr Anthony Lynham welcomed Santos’decision to proceed with the Arcadia gas development.

“This is further fixed capital investment in our $70 billion LNG industry, and demonstrates ongoing confidence in Queensland as a resources investment destination,” Dr Lynham said.

“The construction jobs are particularly welcome, as will be the royalties that will flow to future Queensland Budgets to help fund doctors and nurses in hospitals and teachers in schools.

“This is also good news for landholders, who have to date benefited from more than $387 million paid in compensation.

“However, the Palaszczuk Government continues to focus on increasing domestic gas supply, to drive down prices for our industrial consumers who use gas as both an energy source and feedstock.”

The Queensland LNG industry supports 7000 oil and gas jobs and generated $9.8 billion in exports over the 12 months to February 2018.

Arcadia is expected to start production in the third quarter of 2019 and produce nearly 27 PJ  at peak in 2022.

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