Oil and gas companies Shell and Petrochina's subsidiary Arrow Energy have signed a 27-year deal to supply Shell's Curtis LNG liquefaction project (QCLNG) in Queensland (Australia). The deal would enable Arrow Energy to commercialise the majority of its gas reserves (5 tcf of 141 bcm) in the Surat Basin, which will be unlocked to feed the Curtis liquefaction facility. Neither Shell nor Arrow Energy disclosed the value of the transaction, which will allow Arrow Energy to make a final investment decision (FID) in 2018 on whether to go ahead with the development of its coal seam gas resources in the Surat Basin.
QCLNG has a capacity of 8.5 Mt/year over two trains commissioned in 2014 and 2015. The plant currently is supplied from coal seam gas produced from the Surat and Bowen basins by Australia Pacific LNG (APLNG), a joint venture of ConocoPhillips (37.5%), Origin Energy Limited (37.5%) and Sinopec (25%). The LNG is mainly sold through two 20-year contracts to CNOOC and to Energy Market Authority of Singapore.
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