AUSTRALIA: Shell’s QGC business has initiated the development of a new set of onshore natural gas wells in Queensland’s Western Downs region.
The project involves the drilling and connection of approximately 138 new coal-bed methane wells across the Surat Basin’s central, southern, and northern development areas, with an expected lifespan of 15 years.
Preparation for drilling will begin in the final quarter of 2024, with construction slated for January to March 2025.
The entire project is expected to take around two years to complete.
Both federal and state environmental approvals are already in place, ensuring compliance with stringent regulatory standards.
The initiative is set to support up to 300 jobs, providing a significant boost to the regional economy.
The newly drilled wells will enhance gas supply for domestic customers and support exports through Shell’s Queensland Curtis LNG (QCLNG) project, which has a capacity of 8.5 million tonnes per annum.
To date, QGC has drilled over 3,200 gas wells and installed 7,000 kilometres of pipeline in Queensland.
The QGC joint venture, which includes Shell (the majority stakeholder and operator), China’s CNOOC, and Japan’s Tokyo Gas, aims to bring around 210 petajoules of gas to market over the next 15 years.
These wells will be integrated into existing QGC gas processing plants in the region, facilitating efficient gas production and supply.
Shell highlights that natural gas will play a crucial role in the energy transition, enabling the integration of more renewable energy sources.
The project is currently in negotiations with local landholders to secure access and agree on well locations, aiming to minimise the impact on farming activities.
Economic studies suggest that the project will bring substantial benefits to the Western Downs region.
Increased employment opportunities, higher wage incomes, and royalty payments to landowners are among the key economic impacts.
However, it is noted that the employment impacts may decrease over time as the industry becomes more efficient and automated.
Nonetheless, the new wells are poised to generate several hundred new jobs, increased wages, royalty income for landowners, and economic growth in supporting industries over the coming years.
