The biggest new resources project in Queensland in eight years has been approved by the State Government.
Arrow Energy’s $10 billion Surat Gas Project is expected to generate up to 1000 jobs.
Approval has been granted for 14 petroleum leases between Dalby and Wandoan that will bring an extra 5000 petajoules of gas to market over 27 years, including 240 petajoules per annum during peak production from 2026.
“The Surat Gas Project will create up to 800 construction jobs and 200 ongoing operational jobs, as well as millions of dollars in business opportunities for local suppliers,” Premier Annastacia Palaszczuk said.
“Currently scheduled to be operational in 2020, the project will produce gas for LNG for export and for domestic users.
“This is the biggest resources project since 2011 when the LNG projects were sanctioned.”
The leases cover about 2500 square kilometres on blocks between Dalby and Chinchilla in the gas-rich Surat Basin, where major gas projects are already operated by Origin, Santos and QGC.
Mines Minister Anthony Lynham said Arrow Energy proposed to use nearby existing QGC infrastructure including processing facilities and pipelines to transport gas to domestic and export facilities.
“This approach has two major benefits: it will get gas to the market faster and it significantly reduces the project footprint and the potential impact on local communities and the environment,” Dr Lynham said.
Arrow chief executive officer Mingyang Qian welcomed the State Government’s announcement.
“The approval of these petroleum leases is a critical milestone in Arrow delivering 5 trillion cubic feet of gas into the market,” he said.
Queensland’s next major gas project to start production will be Senex Energy’s domestic-only Project Atlas near Wandoan and Miles, with first gas forecast to flow by the end of the year.