Shell-PetroChina JV in Australia expansion

Shell and PetroChina, through their Arrow Energy joint venture, are looking to ramp up operations across the Surat Basin in Australia’s Queensland.

In a statement on Monday, Arrow said it was ready to begin front-end engineering and design work for the expansion of the Tipton gas project. The accompanying contract is set to be awarded “within weeks.” The proposed work on existing facilities would more than double the project’s production capacity.

“The planned expansion of Arrow’s Tipton operations is expected to involve 90 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,” Qian Mingyang, Arrow chief executive, said in a statement.

The joint venture is also studying ways to move gas to Australia’s eastern coast, where fuel shortages are looming. “I’m expecting that we will reach agreement on a path to market for the majority of Arrow’s Surat Basin gas reserves later this year,” Mingyang added.