Arrow Energy Ltd. has received environmental approval from the Australian government for construction of its proposed 4,500-km Arrow Bowen project gas pipeline to link its coal seam gas (CSG) fields in the Bowen basin of Queensland to Gladstone on the central-east coast.
The buried line received Queensland state government approval in March 2013, but the federal government green-light follows Arrow’s recent decision to begin front-end engineering and design phase for its Bowen CSG project.
The development is based on bringing gas from permits close to its existing gas fields about 150 km southwest of Mackay in a staged expansion of some 4,000 wells in a 8,000 sq km area during the next 40 years.
The Clough-AMEC joint venture began the $70 million (Aus.) front-end engineering and design contract this week.
The Bowen project is targeting domestic gas markets, but is also one of the CSG projects linked to the company’s postponed $20 billion (Aus.) LNG project on Curtis Island near Gladstone.
Arrow is owned 50-50 by Royal Dutch Shell PLC and PetroChina.