08 May 2017
Arrow Energy’s announcement that it will undertake front-end engineering design work for a proposed major expansion of its Tipton gas project in the Surat Basin is good news for Queensland and the gas market.
Arrow says the proposed expansion could more than double production capacity at Tipton, resulting in more gas getting to market.
APPEA Queensland Director Rhys Turner said that Arrow’s announcement once again showed that Queensland-based operators continue to do the heavy lifting in getting more gas to market.
“Arrow’s planned expansion of its Tipton operations may involve up to 90 wells in the initial phase and up to another 180 wells over the next 25 years,” Mr Turner said.
“This initiative – coupled with the recent announcement by QGC, a Shell joint venture, that it will soon start drilling up to 161 additional wells as part of Project Ruby – shows the industry in Queensland is getting on with the job.
Mr Turner said that all parties know that the only way to meet gas demands for exports, domestic manufacturing, and energy generation in a sustainable manner is to increase supply, which is exactly what Queensland operators are going.
“Disappointingly, governments in the south-eastern states continue to have their heads in the sand when it comes to looking at new ways to increase the country’s gas supply. They still prevent local projects yet expect the industry to supply their markets,” Mr Turner said.
“For example, we have the absurd situation that the Victorian Government, supported by the Victorian Opposition, has effectively banned all forms of gas extraction in their own state.