According to The Australian Financial Review, almost 10 years after they acquired Queensland gasfield developer Arrow Energy, Shell and PetroChina have finally given the green light for the first phase of the $10 billion development of Arrow's resources, shrugging off the oil price slump that has slashed spending across the sector.
The unexpected go-ahead, which will open up 90 billion cubic feet a year of coal seam gas supply, should help head off a forecast shortfall in east coast supplies that could hit as early as 2023.
Gas from the first phase, thought to cost about $2 billion, will be sold partly on the local east coast market and partly exported through Shell's QCLNG plant at Gladstone.
More than 600 wells will be drilled in the first phase, of more than 2500 anticipated across the 3-5 phases of the 27-year project. Construction is to start this year, with gas to flow in 2021.
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