Shell invests in the next phase of Arrow Energy’s Surat Gas Project
Shell announced on Wednesday that it will invest in the next phase of the Surat Gas Project, an Australian joint venture between Shell and PetroChina, being developed by Arrow Energy.
Shell stated in a press release that the project will produce 79 million standard cubic feet of gas per day at its peak and supply Queensland Curtis (QCLNG), an export facility for liquefied natural gas. The first?gas should be available in 2028.
Shell has not disclosed the cost of this project.
QCLNG is operated by?Shell and is one of the three LNG exporters?on Australia’s east coast. The Labor government will impose a reservation policy of 20% on all LNG projects starting next year.
QCLNG exports more than 8 million metric tons of LNG per year.
Shell Australia Chair Cecile wake has criticised the policy, saying it will?hinder investment'.
Wake stated in a Wednesday statement that "Gas has a stabilising effect on the energy system, as we decarbonise. Australia's best interests are served by a well-supplied and strong domestic market underpinned by an export sector that is flourishing."
Shell's QCLNG partners are China's CNOOC with a 25% stake, and the privately-owned?U.S. MidOcean Energy holds 1.25%. (Reporting from Renju Jose and Helen Clark, in Sydney; editing by Edmund Klamann and SonaliPaul)
(source: Reuters)
