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Arrow to undertake FEED for project expansion

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Arrow Energy has announced that it will undertake the front-end engineering and design (FEED) phase for the proposed major expansion of its Tipton gas project, which is located 30 km west of Dalby in Queensland’s Surat Basin, Australia.

The CEO of the company, Qian Mingyang, stated that there will be significant upgrades to the existing facilities, and that the project’s production capacity will be doubled to over 80 TJ/d.

Mingyang said: “This project continues the development of the Arrow resource which will see more gas in the market.”

This project followed a recent investment of $600 million plus by Arrow in its Surat Basin infrastructure. This investment consists of the $500 million Daandine expansion project (which was commissioned in late 2016) and the commencement of the $100 million plus Produce the Limit (PtL) project earlier in 2017, to expand capacity at both the Daandine and Tipton fields.

Arrow claims that the Tipton expansion FEED contract would be awarded within weeks through the company’s engineering master service agreement.

Mingyang added: “The planned expansion of Arrow’s Tipton operations is expected to involve 90 new wells in the initial phase and another 180 wells over the next 25 years – along with new gathering lines, an upgraded water treatment facility and four new compressors.

"The PtL project is well under way, and will enable Arrow to run existing compression facilities to their maximum design limits, increasing our current Surat production by up to 30%.”

Arrow claims that, combined, the expansion projects (Daandine, PtL and Tipton) would bring its Surat gas production to over 170 TJ/d for both domestic and export use.

Mingyang added that, once the FEED phase is complete, shareholders would consider a final investment decision (FID). In addition to these expansion activities, he said that collaboration with industry proponents would be important in bringing the company’s sizeable gas reserves into the east coast gas market.

Mingyang concluded: “I am expecting that we will reach agreement on a path to market for the majority of Arrow’s Surat Basin gas reserves later this year.”

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