27 year gas deal largest on east coast of Australia
ONE of the largest gas supply deals on the east coast of Australia was settled yesterday, claiming to bring economic growth to the region.
Arrow Energy and the Shell-operated QCLNG have shaken hands on a 27 year deal to commercialise the majority of Arrow Energy's gas reserves in the Surat Basin near Dalby and Chinchilla.
It is estimated the size of the gas reserve which will be commercialised will be roughly five trillion cubic feet. The area has produced gas for more than a decade.
In a statement released by Arrow Energy on Friday, the project is said to create around 1000 new jobs; 800 during peak construction and around 200 ongoing operational roles.
CEO of Arrow Energy, Qian Mingyang, said the new deal would bring together several parties and bring infrastructure.
"The deal offers long-awaited infrastructure collaboration in the natural gas industry, creating better cost efficiencies and enabling us to bring this gas to market in a challenging investment climate,” Mr Mingyang said.
"Collaboration between the parties will see use of existing QGC-operated infrastructure such as gas compression, processing and transmission infrastructure as well as water transport and treatment facilities.
"Utilising existing upstream infrastructure will reduce impacts to landholders and to communities.”
Mr Mingyang said phased development activity would commence from the expansion of Arrow's Tipton fields, near Dalby, and build to new development areas from around 2021.
Arrow Energy stated there would be a flow-on effect for the local communities around the Dalby and Chinchilla region, where their gas fields are.
Added employment in the area is hoped to boost the regional economy, as well as infrastructure contributions and investments in community programs according to the company.
Western Downs Regional Council mayor, Paul McVeigh, said the benefits of this deal would be felt for generations.
"We talk about having four pillar to our local economy, agriculture, intensive agriculture, resource sector and renewable energy,” Cr McVeigh said.
"With this announce of a 27-year deal, it underpin the strength and the value of our resource sector, adding to the economic diversity of the Western Downs region.
"This puts job security into our resource sector for generations to come. We look forward to this deal to enhance our think local and buy local message.”