The UK oil and gas group Shell and the Chinese company PetroChina have announced plans to expand the Surat coal seam gas project (SGP) located in Australia’s State of Queensland. This second phase development of the project (SGP North) will bring more than 130 TJ/d (1.3 bcm/year) of additional gas. First gas for the second phase is expected by 2026.
Construction on SGP North is scheduled to begin before the end of 2024, with infrastructure to include up to 450 new gas production wells, a new field compression station, 27km of pipeline, and road and infrastructure upgrades over two phases.
The first phase of the project, which is operated by Arrow Energy, a joint venture between Shell and PetroChina, started in 2020 and is now in production. Phase one includes more than 600 wells.
As of end-2023, Australia’s proved natural gas reserves stood at 2,844 bcm. The country produced over 162 bcm in 2023.