Arrow Energy is planning to take up front-end engineering design (FEED) phase for a major expansion of its Tipton gas project in Surat Basin in the Australian state of Queensland.
The company stated that the investment would help in doubling the production at the Tipton gas project to more than 80 Terra Joules per day (TJ/d).
The joint venture company between Shell and PetroChina stated that the Tipton expansion FEED contract will be awarded within a few weeks through its engineering master service agreement.
The expansion of the project, which is located 30km west of Dalby, follows a recent investment of more than $600m in the Surat Basin infrastructure by Arrow.
The investment includes about $367.6m in Daandine expansion project, which was commissioned last year and start of a over 100m Produce the Limit (PtL) project earlier this year, to increase its capacity at the Daandine and Tipton fields.
The three expansion projects including Tipton, Daandine and PtL are expected to increase Arrow’s Surat gas production to more than 170 TJ/d, for both domestic and export use.
Arrow Energy claims that the investment in Surat Basin is a strong commitment by the company to harness the reserves despite challenging economic conditions.
Arrow Energy CEO Qian Mingyang said: “This project continues the development of the Arrow resource which will see more gas in the market.
“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.
"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%.”
Qian stated that once the FEED contract is complete, shareholders would consider a final investment decision for the project.