Arrow Energy expects to start work before the end of the year on a major expansion of its Surat Gas Project (SGP) to an area north-east of Miles.

The infrastructure for Surat Gas Project North will include up to 450 new gas production wells, a new field compression station, 27km of pipeline, and road and infrastructure upgrades over two phases.

Arrow chief executive officer Zhengxin Peng said he was pleased to receive sanction from shareholders for SGP North, with first gas targeted for 2026.

“At a time when more gas is needed for homes, businesses and industries, the SGP North development will solidify Arrow’s position as a major producer of natural gas on the east coast,” Mr Peng said.

Mr Peng said the Miles region would benefit from up to 400 jobs to be created from the development.

The SGP North development will bring more than 130 terajoules of additional gas to market per day for long-term contract and domestic customers.

The broader Surat Gas Project is underpinned by a 27-year gas sales agreement to supply the Shell-operated QCLNG joint venture.

“Like the first phase of the SGP, we will be minimising our environmental footprint and impact to the community through our agreement with Shell QGC, which enables us to use existing facilities and infrastructure,” Mr Peng said.

The project includes a low-pressure gas connection to QGC’s McNulty field compression station and a medium-pressure pipeline to connect the new SGP North field compression station to QGC’s Bellevue central processing plant.

The Surat Gas Project is expected to comprise up to 2500 gas wells and produce 4000 petajoules of gas after the latest development.

Arrow Energy is an incorporated joint venture between Shell and PetroChina.

Shell integrated gas and upstream director Zoë Yujnovich said embarking on Phase 2 of the Surat Gas Project with Arrow was part of the group’s commitment to bring more gas to market.

“QCLNG marked its 1000^th cargo at the end of last year, reflecting its significance as a gas supplier for Australia and the region,” he said.

“This investment will enable us to sustain and grow this important, secure energy source that offers a lower emissions alternative to options like coal.”

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