Arrow lets contract for CSG-LNG project

Arrow Energy Ltd., owned jointly by Royal Dutch Shell PLC and PetroChina, has let a front-end engineering and design contract for its coal seam gas-LNG project in Queensland to the CJV consortium headed by Chiyoda Corp. of Japan. The other partners are CB&I and Saipem.

The design of the initial two-train plant will begin immediately and will be carried out during the next year in Japan, the US, and Australia.

Each train will have a capacity of 4 million tonnes/year of LNG with the potential to expand to a four-train facility in the future.

The plant design will employ Shell’s proprietary LNG technology.

It is now just on 12 months since Shell and PetroChina acquired the Brisbane-based Arrow Energy in equal shares.

The FEED contract follows the award of a contract to Parsons Brinckerhoff to investigate options for a power supply to surface facilities required by Arrow to further develop its coal seam gas projects in the Surat and Bowen basins of southeast Queensland.