AUSTRALIA — Arrow Energy has unveiled plans for a significant expansion of its Surat Gas Project (SGP) in Queensland’s Western Downs region.
The new development, dubbed SGP North, is set to commence construction later this year, with the first gas production targeted for 2026.
The SGP North expansion will be located northeast of Miles and is expected to contribute an additional 130 terajoules of gas per day to the market.
This development is part of the larger SGP initiative, which aims to produce over 4000 petajoules of gas throughout its 27-year lifespan.
Key infrastructure for the SGP North project includes:
- Up to 450 new gas production wells
- A 121 TJ/d four-compressor field compression station
- 27km of medium-pressure pipeline
- Low-pressure gas connection to QGC’s McNulty field compression station
- Water and brine infrastructure expansion
- Road and telecommunication upgrades
Arrow Energy CEO Zhengxin Peng emphasised the project’s significance in meeting growing energy demands.
“The SGP North development will solidify Arrow’s position as a major producer of natural gas on the east coast,” Peng stated.
The expansion is expected to create up to 400 jobs in the Miles region, providing economic benefits to local contractors, suppliers, and Indigenous businesses.
Peng also highlighted the company’s commitment to minimising environmental impact, leveraging existing facilities and infrastructure through an agreement with Shell QGC.
This expansion comes at a crucial time for Australia’s energy sector.
The project will supply both domestic and export customers through the Queensland Curtis LNG plant near Gladstone.
While the development is likely to face scrutiny from environmental activists, it is expected to help alleviate pressure on an increasingly strained energy market.
The SGP North expansion represents a significant step in Arrow Energy’s ongoing development of the Surat Basin, further cementing its role in Australia’s natural gas production landscape.