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Australia’s Beetaloo Shale Basin Is About to Start Pumping Gas

By Irina Slav - Aug 21, 2026

First gas from Australia’s Beetaloo shale basin is scheduled to start flowing next month, with initial production of 37 million cu m, Reuters has reported, noting hopes that the country could replicate the U.S. shale gas success story.

The Beetaloo basin is located in the Northern Territory and is estimated to hold some 500 trillion cu ft of gas. It has been compared to the giant Marcellus shale play in the United States. The government of the Northern Territory is hoping that Beetaloo will turn it into another LNG production hub.

Development of those reserves, however, has been slow, as the industry has focused on conventional deposits for growth in Australia. Now, however, it seems like an opportune moment to move on to shale—especially in light of worries that Australia may begin to experience domestic gas shortages on the east coast before long due to heavy exports under long-term contracts.

First gas from Beetaloo, produced by Tamboran Resources and Beetaloo Energy, will go to the city of Darwin to secure its gas needs while the companies monitor depletion rates in these first wells, Reuters noted in its report. Earlier this year, the chief executive of Tamboran Resources, Todd Abbott, said he expected the company to be pumping over 1 billion cu m of gas daily. According to Reuters, this could add 9% to Australia’s liquefied natural gas export capacity.

Japan is the biggest buyer of Australian gas, which is why Inpex earlier this year made its own bet on the Beetaloo basin with an investment in acreage in the basin it acquired from Formentera Partners.

“You need a party with deep pockets who's willing to deploy billions of dollars over several years before being able to prove up a large-scale commercial play, and they've never had that until now,” MST Marquee senior energy analyst Saul Kavonic said.

The Beetaloo Sub-basin is a world-class gas resources of a similar scale to the United States’ largest shale gas play, the Marcellus Shale.

Resource scale: 430 trillion cubic feet (tcf) of gas in place.
Production potential: Possibly 6,000+ terajoules (TJ) per day, enabled by modern drilling and hydraulic stimulation technologies.
Economic impact: A transformative opportunity for the Northern Territory, with the potential to generate over $17 billion in economic value over the next two decades, in royalties, employment opportunities and business growth.
The Beetaloo is central to the Territory’s energy and economic future - delivering secure and affordable gas supply, driving economic growth, powering manufacturing and positioning the Northern Territory as a leader in responsible resource development.

Chevron Reports “Extensive Damage” at Major LNG Project

By Irina Slav - Mar 31, 2026

Chevron’s Wheatstone LNG plant offshore Australia has suffered “extensive damage” from a cyclone that recently passed through Australia.

The two liquefaction trains at the facility remain shut, Reuters quoted Chevron’s Australian director of operations and maintenance as saying.

“We have a number of fin fans or air-cooled heat exchangers that sustained some damage,” Danny Woodall said at an industry event in Sydney. “We've got a dedicated team right now that is ‌working on getting those repaired,” he added.

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Australie: trois sites majeurs de production de GNL interrompus au passage d'un cyclone

Connaissance des Énergies avec AFP le 27 mars 2026

Un cyclone longeant la côte ouest de l'Australie a provoqué des coupures dans trois des plus grands sites de production de gaz naturel liquéfié (GNL) au monde, ont indiqué vendredi les géants de l'énergie Chevron et Woodside, quand la guerre au Moyen-Orient perturbe déjà fortement l'approvisionnement de ce combustible.

L'Australie est l'un des plus grands exportateurs mondiaux de GNL et le principal fournisseur de gaz liquéfié aux pays d'Asie qui subissent de plein fouet les perturbations de l'approvisionnement en hydrocarbures provoquées par le blocage du détroit d'Ormuz imposé par l'Iran, en représailles aux attaques israélo-américaines.

Les sites exploités par Chevron, Gorgon et Wheatstone, fournissent à eux deux environ 5% du GNL mondial selon l'entreprise, quand l'usine de Karratha de Woodside traite le gaz provenant de l'une des plus importantes exploitations gazières offshore du monde.

"Chevron Australie s'efforce de rétablir la production dans les infrastructures gazières de Gorgon et de Wheatstone à la suite d'interruptions de production", a indiqué l'entreprise dans un communiqué.

Les deux usines ont subi des interruptions jeudi après-midi alors que le cyclone tropical Narelle menaçait au large des côtes de l'Australie-Occidentale.

L'usine de Gorgon, la plus grande des deux, continuait de fonctionner à capacité réduite, a précisé Chevron.

A pleine capacité, elle peut produire plus de 15 millions de tonnes de gaz par an et Wheatstone près de neuf millions de tonnes.

La société pétrolière et gazière australienne Woodside Energy a à son tour indiqué vendredi que son site de Karratha, dans l'Etat d'Australie-Occidentale, avait également subi une "interruption de production".

"Si la production ou les installations devaient subir un impact significatif, Woodside informerait le marché conformément à ses obligations", a déclaré la société dans un communiqué.

Le cyclone tropical Narelle longe les côtes de l'Australie-Occidentale vendredi après-midi. Il se déplace vers le sud, s'éloignant progressivement des sites côtiers de Gordon, Wheatstone et Karratha, mais souffle dans son sillage des vents pouvant atteindre 200 kilomètres à l'heure.

- "Au pire moment" -

"Cette perturbation" arrive "au pire moment" car elle vient réduire encore davantage les approvisionnements en carburant déjà mis à rude épreuve par la guerre au Moyen-Orient et "ne contribue guère à rassurer les importateurs de GNL quant à la fiabilité de l'approvisionnement en GNL", a déclaré à l'AFP Josh Runciman, analyste du secteur gazier.

Les prix du GNL dans certains pays d'Asie qui dépendent fortement des importations de carburants, notamment de l'Australie, ont plus que doublé depuis le début du conflit fin février.

Par exemple, 40% du GNL du Japon provient d'Australie, selon l'Association asiatique du gaz naturel et de l'énergie.

Le Qatar, sur le podium des exportateurs mondiaux de GNL derrière les Etats-Unis, a vu ses exportations chuter avec le conflit entamé depuis près d'un mois, les méthaniers évitant le détroit d'Ormuz fermé de facto.

Le président américain Donald Trump a partiellement apaisé les marchés de l'énergie jeudi après son annonce de repousser une deuxième fois la date limite de l'ultimatum fixé à l'Iran pour rouvrir le passage maritime stratégique, mais ils restent méfiants vendredi, le baril de Brent de la mer du Nord, référence mondiale, dépassant toujours les 100 dollars.

Le directeur de l'Agence internationale de l'énergie (AIE), Fatih Birol, a déclaré que les exportations australiennes de GNL étaient devenues "plus essentielles que jamais".

"Mais l'Australie ne pourra pas, à elle seule, compenser l'intégralité du manque de GNL en provenance du Moyen-Orient", a-t-il déclaré lors d'un déplacement à Canberra en début de semaine.

Alors que les bénéfices de l'industrie du GNL devraient augmenter dans le sillage de la crise, des médias australiens ont rapporté que l'Australie envisagerait d'instaurer une nouvelle taxe sur les bénéfices exceptionnels des exportateurs.

Scarborough FPU Arrives in Australia

by Jov Onsat|Rigzone Staff | Tuesday, January 13, 2026

Woodside Energy Group Ltd said Tuesday the Scarborough Energy Project's floating production unit (FPU) had arrived at the project site offshore Western Australia.

The project includes the development of the Scarborough gas field off the coast of Karratha, the construction of a second gas processing train for Pluto LNG with a capacity of five MMtpa and modifications to Pluto Train 1, according to Woodside. The FPU, built in China by Houston, Texas-headquartered McDermott International Ltd, will process gas from the field.

Excluding train 1 modifications, Scarborough Energy was 91 percent complete at the end of the third quarter, according to Woodside's quarterly report October 22, 2025.

"Our focus now shifts to the hook-up and commissioning phase in preparation for production, and ultimately, first LNG cargo which is on track for the second half of this year", Woodside acting chief executive Liz Westcott said in a statement on the company's website Tuesday.

Woodside called the FPU "one of the largest semisubmersible facilities ever constructed". The vessel totals about 70,000 metric tons, according to Woodside.

"It features advanced emissions-reduction systems and is designed to treat and compress gas for export through the trunkline", the statement said. "It can also accommodate future tie-ins to support the development of nearby fields".

The Perth-based company expects the project to produce up to eight million metric tons a year of liquefied natural gas and supply 225 terajoules per day to the Western Australian market.

Chevron Australia, partners reach FID for Gorgon Stage 3 project
The Gorgon Stage 3 development is expected to entail A$3bn ($1.98bn) of investment.

Vidya Sagar Maddela 5 December, 2025


Gorgon Stage 3 will connect the Geryon and Eurytion offshore natural gas fields to the existing subsea infrastructure on Barrow Island. Credit: Chevron Corporation.

Chevron Australia and its joint venture (JV) partners have taken the final investment decision (FID) for the Gorgon Stage 3 development, located off the north-west coast of Western Australia (WA).

The Australian unit of Chevron holds a 47.33% stake, while the JV partners include ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), MidOcean (1%) and JERA (0.417%).

The Gorgon Stage 3 development is expected to entail A$3bn of investment.

It will connect the Geryon and Eurytion offshore natural gas fields to existing subsea gas-gathering infrastructure and processing facilities on Barrow Island.

This project development will help maintain production at the Gorgon facility, supporting the long-term supply of domestic gas to WA households and industry.

It also targets the export of liquefied natural gas (LNG) to customers in Asia.

The project is part of the original development plan for Gorgon and marks the first of several planned subsea tiebacks in the region.

Chevron Australia president Balaji Krishnamurthy said: “Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia-Pacific region.
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ConocoPhillips Makes Offshore Gas Discovery in Australia's Otway Basin

by Jov Onsat|Rigzone Staff | Tuesday, November 18, 2025

ConocoPhillips made a natural gas discovery offshore Victoria in the Otway Basin, though further work is needed to determine potential flow rates, the United States company's Australian unit said Monday.

"The Essington-1 well is the first discovery in the Otway since 2021 and is a promising start to ConocoPhillips' exploration activities in the region", ConocoPhillips Australia president Jan-Arne Johansen said in an online statement.

"The initial results are encouraging, and we look forward to continuing drilling our second exploration well in December".

ConocoPhillips Australia said, "Preliminary estimates from logs and wireline results place the primary Waarre A target reservoir as a 62.6-meter gross hydrocarbon column. The secondary Waarre C target shows a further 33.2-meter gross hydrocarbon column as best estimates".

3D Energi said separately, "Elevated gas readings were recorded in both the Waarre C (intersected at 2,265 meters MDRT) and Waarre A (intersected at 2,515 meters MDRT) reservoirs".

"In both reservoirs, gas peaks coincide with elevated resistivity readings observed on Logging While Drilling tools, consistent with probable hydrocarbon presence", 3D Energi added.

The discovery sits 12 kilometers (7.46 miles) from producing gas wells and about 53 kilometers (32.93 miles) from Port Campbell, Victoria, according to ConocoPhillips Australia.

"Further work will be conducted to determine potential flow rates, the reservoir's ultimate resource recovery and the commercial viability for potential development plans", ConocoPhillips Australia said.

The partners expect to complete operations at the well this month, after which the well will be plugged and abandoned.

"A second well in VIC/P79 (Charlemont-1) expected to commence in December (weather and operational conditions permitting) and additional wells may be considered in the future under the accepted Environmental Plan", ConocoPhillips Australia said.

It announced the start of the Otway exploration campaign November 1, "in an effort to find new domestic natural gas supply and be part of the solution to Victoria's forecast gas shortfalls in the coming years".

ConocoPhillips Australia operates the Otway Exploration Drilling Program with a 51 percent stake in the joint venture. Korea National Oil Corp owns 29 percent and Australian player 3D Energi Ltd 20 percent.

Santos Launches $4.5 Billion LNG Project Offshore Australia

By Charles Kennedy - Sep 22, 2025

Australia’s oil and gas major Santos on Monday announced that a floating production vessel had received first gas from the $4.5-billion Barossa project offshore northern Australia, with the floating unit being the production centerpiece of the Barossa LNG project.

The BW Opal FPSO (floating production, storage and offloading vessel) will be permanently located in the Barossa gas field about 285 kilometers (177 miles) offshore from Darwin in the Northern Territory of Australia. The floating vessel will feed the Darwin LNG plant for the next two decades, Santos said on Monday.

This was the first piece of positive news for the company since it announced last week that a consortium led by Abu Dhabi’s state energy major ADNOC had pulled an $18.7-billion bid for the Australian group, due to disagreements over price.

In today’s press statement on the Barossa project, Santos announced that the BW Opal achieved ready for start-up status on September 16, 2025, and gas began to flow from the subsea wells last week.

The Northern Territory Environment Protection Authority has renewed the Environment Protection Licence for Darwin LNG, commencing September 19, 2025. This paves the way for first gas into, and start-up of, the Darwin LNG plant, Santos said.

The Barossa field will feed Darwin LNG, which has been exporting the super-chilled fuel predominantly to Japanese customers.

“RFSU for the BW Opal marked the formal transition from project execution to production operations, following RFSU for the Darwin LNG plant upon completion of the life extension work scope and the commencement of production from the offshore subsea wells,” said Santos managing director and CEO Kevin Gallagher.

Santos bets big on the Barossa LNG project and the Pikka oil project in Alaska for boosting oil and gas output in the coming months. The two projects are set to boost Santos’ oil and gas production by 30% by 2027, and hike cash flows.

Hydrocarbures: le consortium mené par l'émirati Adnoc retire son offre d'achat de l'australien Santos

Boursorama avec AFP •17/09/2025

Le consortium mené par la compagnie nationale d'hydrocarbures des Emirats arabes unis Adnoc a annoncé mercredi le retrait de son offre d'achat du fournisseur de gaz naturel liquifié (GNL) australien Santos.

Adnoc avait offert en juin 18,7 milliards de dollars américains pour acquérir le groupe australien, par le biais d'un consortium mené par sa filiale XRG, afin de créer un géant mondial du gaz naturel.

Le consortium, qui compte aussi le fonds souverain d'Abou Dhabi ADQ et la société internationale d'investissement Carlyle, a indiqué dans un communiqué qu'il "retirait son offre indicative et ne ferait pas d'offre ferme concernant Santos".

"Bien que le consortium conserve une opinion positive sur les activités de Santos, plusieurs facteurs, considérés dans leur ensemble, ont influé sur son évaluation de l'offre indicative", a-t-il ajouté.

"Après une évaluation approfondie, et compte tenu de tous les facteurs commerciaux ainsi que des conditions de l’accord de mise en œuvre du projet exigées par le conseil d’administration de Santos, le consortium a décidé qu’il ne donnerait pas suite à la transaction proposée", selon le communiqué.

Santos, présent en Australie, en Papouasie-Nouvelle-Guinée, au Timor oriental et aux Etats-Unis, est un important fournisseur de GNL en Australie et en Asie.

Il avait affirmé en juin que son conseil d'administration avait l'intention "de recommander à l'unanimité" à ses actionnaires d'approuver la transaction, si les deux parties se mettaient d'accord sur les termes de l'opération.

Major Aussie LNG Plant Gets 40 More Years
by Bloomberg|Keira Wright | Friday, September 12, 2025

Australia's first and largest liquefied natural gas plant cleared the final hurdle to operate until 2070, after an almost seven-year process during which operator Woodside Energy Group Ltd. faced opposition from environmentalists and traditional owners concerned about the site’s pollution.

Environment Minister Murray Watt has allowed the North West Shelf project in Western Australia to keep operating for an additional 40 years, almost four months after he granted provisional approval. Woodside has agreed to 48 conditions to limit the site's impact on local Aboriginal rock art.

"This is the last procedural step in a lengthy process," Watt said in a statement. "I have imposed conditions that will require a reduction in certain gas emissions below their current levels, in some cases by 60 percent by 2030 with ongoing reductions beyond that," he said, without specifying the gases.
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Engie: protocole d'accord avec Santos dans le gaz naturel en Australie

Cercle Finance •04/08/2025

Santos a annoncé lundi avoir signé un protocole d'accord non contraignant avec Engie en vue de fournir au groupe énergétique du gaz naturel issu du projet Narrabri et devant être destiné au marché domestique de la côte est australienne.

Selon les termes du contrat, Santos fournirait à Engie jusqu'à 20 pétajoules (PJ) par an de gaz naturel provenant du champ Narrabri, et ce pendant au moins dix ans à compter du démarrage des opérations.

Engie s'engagerait de son côté à destiner 100% de ce volume au marché intérieur australien.

Les deux groupes ont par ailleurs convenu d'examiner des opportunités dans le domaine de la décarbonation via l'activité de gestion de carbone tierce de Santos, notamment à travers un projet de captage et stockage du carbone (CSC) actuellement à l'étude.

Dans un communiqué, Santos précise que l'accord de fourniture de gaz de Narrabri reste soumis à sa décision finale d'investissement.

Santos, qui a acquis cet actif en 2011, travaille depuis maintenant plus d'une décennie à son développement, dans lequel il a investi à ce jour plus de 1,5 milliard de dollars australiens.

En 2020, le groupe s'est engagé volontairement à réserver 100% de la production de Narrabri au marché intérieur, notamment afin que les clients de Sydney et de la région de Nouvelle-Galles du Sud puissent compter sur un approvisionnement local et compétitif en gaz.

Santos’ Barossa project advances with arrival of FPSO vessel
Built by BW Offshore, the FPSO can manage 850 million standard cubic feet of gas daily and is designed to process 11,000 barrels of stabilised condensate each day.

Swagath Bandhakavi 19th Jun 2025


Santos’ Barossa gas field nears first gas milestone with BW Opal FPSO arrival. (Credit: BW Offshore)

Santos has announced the installation of the BW Opal floating production, storage, and offloading (FPSO) vessel at the Barossa gas field in Australia.

Constructed by BW Offshore, the FPSO is equipped to handle 850 million standard cubic feet of gas per day (MMSCFD) and has a design capacity to process 11,000 barrels of stabilised condensate daily.

The arrival of the vessel signifies a significant milestone towards achieving first gas in Q3 2025. Following its successful connectivity, the final commissioning activities are currently on track, said Santos.

The FPSO serves as the central production facility in the Santos-led Barossa LNG project. The project, involving joint venture partners SK E&S and JERA, has seen an investment of $3.95bn and is nearing the completion of its commissioning phase.

The Barossa gas project is designed to supply new gas sources to the existing Darwin liquified natural gas (DLNG) facility in Northern Territory waters.

Santos managing director and CEO Kevin Gallagher said: “The arrival of the BW Opal FPSO into the Barossa field and commencement of hook up and commissioning is a significant milestone for Santos and its Barossa LNG joint venture partners.

“The project has come a long way since regulator acceptance of the offshore project proposal in 2018.”

Gas will be extracted from the Barossa field, situated approximately 285km offshore from Darwin, and transported to the DLNG facility through the Gas Export Pipeline (GEP) and the Darwin Pipeline Duplication (DPD).

Apart from the FPSO, the project infrastructure includes a subsea production system, supporting in-field subsea structures, and both pipelines GEP and DPD.

Five out of six planned wells have been drilled, with the fifth well poised for flow testing. Completion of the final well is expected in Q3 2025.

Production readiness from three wells can meet full production rates at the DLNG plant if required.

According to Santos, the construction of the 262km GEP and 123km Darwin Pipeline Duplication is complete, alongside necessary subsea infrastructure for first gas delivery.

Santos continues to expand its long-standing partnerships with major utilities in Japan, Korea, Malaysia, and China. The Barossa LNG project aims to provide reliable energy for over a decade while supporting energy security and emissions reduction goals across Asia.

L'Australie approuve la prolongation pour 40 ans d'un projet gazier décrié

Boursorama avec AFP •28/05/2025

Le gouvernement australien a donné son feu vert mercredi à la prolongation pour 40 ans d'un important projet gazier critiqué pour son impact sur le climat et sur la préservation de sites d'art rupestre aborigène.

Le ministre australien de l'Environnement Murray Watt a décidé de maintenir en activité jusqu'en 2070 l'installation de North West Shelf (nord-ouest) exploitée par l'entreprise australienne Woodside Energy, alors que la fermeture du site était prévue pour 2030.

North West Shelf est un complexe industriel comprenant plateformes offshore, pipelines sous-marins et installations de transformation des hydrocarbures. Le site pompe plus de 10 millions de tonnes de gaz liquéfié et de pétrole chaque année.

Il s'agit d'un des plus importants sites mondiaux pour la production de gaz naturel liquéfié - et de l'une des plus grandes sources de pollution du pays océanien.

Selon M. Watt, la décision de prolongation du projet est "sujette à des conditions strictes" établies pour limiter l'impact des émissions.

Mais des dirigeants de plusieurs pays océaniens, dont le littoral est déjà menacé par la montée du niveau de la mer, ont exhorté Canberra à mettre un terme au projet gazier.

"Les dirigeants du Pacifique l'ont dit clairement: il n'y a aucun avenir pour nos nations si le développement des combustibles fossiles continue", a déclaré plus tôt cette semaine le ministre du Changement climatique des Tuvalu, Maina Talia.

"La prolongation de North West Shelf verouillerait les émissions jusqu'en 2070, ce qui menacerait notre survie et violerait l'esprit du partenariat entre le Pacifique et l'Australie sur le climat."

L'Australie assure que l'extension du projet, qui émet chaque année des millions de tonnes de gaz à effet de serre, ne remet pas en question son engagement d'atteindre la neutralité carbone à l'horizon 2050.

Mais cela lui pose un problème diplomatique au moment où elle cherche à accueillir la conférence des Nations unies sur le climat l'an prochain, la COP31, aux côtés des nations insulaires du Pacifique.

Le Premier ministre Anthony Albanese a souligné que le gaz naturel liquéfié permettrait de combler les besoins énergétiques du pays en attendant que davantage de capacités en énergie renouvelable soient raccordées au réseau électrique australien.

"On ne peut pas avoir d'énergies renouvelables si l'on n'a pas de capacités qui se renforcent. C'est aussi simple que cela", a-t-il déclaré cette semaine.

- Sculptures de 40.000 ans -

L'usine de traitement de Woodside se trouve sur la péninsule de Burrup, en Australie occidentale, qui abrite des pétroglyphes, des sculptures sur pierre aborigènes parmi les mieux préservées du pays.

Une étude est en cours pour déterminer si la pollution industrielle a abîmé ces sculptures, dont certaines auraient 40.000 ans.

M. Watt a précisé avoir pris en compte une "protection adéquate de l'art rupestre" dans sa décision alors que des responsables autochtones ont tenté d'empêcher l'extension du projet.

"Les toxines qui s'échappent, nous les voyons tous les jours", a déclaré Raelene Cooper avant la décision du gouvernement.

"Personne n'a eu son mot à dire (...). Le gouvernement n'est jamais venu nous voir. Woodside n'est jamais venu nous voir", a déploré la militante aborigène.

Le projet fait partie des cinq plus grands émetteurs de gaz à effet de serre d'Australie, selon les chiffres de l'organisme de réglementation de l'énergie propre du pays.

Ces gaz, tels que le dioxyde de carbone et le méthane, retiennent la chaleur lorsqu'ils s'accumulent dans l'atmosphère, alimentant ainsi le changement climatique.

Exxon Invests in New Natural Gas Project Offshore Australia

By Tsvetana Paraskova - Feb 24, 2025

ExxonMobil and its partners in the Gippsland Basin offshore southeastern Australia are investing nearly $200 million in the development of a new natural gas project that would help meet Australia’s domestic demand.

Exxon’s unit Esso Australia Resources Pty Ltd and its co-venturers Mitsui and Woodside Energy have approved the Kipper 1B Project to bring online much-needed additional gas supply from the Gippsland Basin, the U.S. supermajor said on Monday.

The project will involve the drilling and installation of one subsea well into the Kipper field, and significant upgrades to the West Tuna platform. Kipper 1B is expected to expand capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026, Exxon said.

“Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market,” ExxonMobil Australia Chair Simon Younger said in a statement.

Exxon’s Australia unit continues to invest in multiple projects to sustain gas production from the Gippsland basin well into the 2030s, the executive added.

The Gippsland Basin is one of Australia’s most prolific hydrocarbon provinces located about 200 km (125 miles) east of the city of Melbourne.

Australia is betting on boosting natural gas production as domestic supply in major consuming areas is often strained at peak demand periods.

Australia is backing its gas industry and it will continue to back exploration and increased production of natural gas. The fuel will play a key role in the country’s transition to a net-zero economy by 2050 and help provide a reliable source of energy to Australia’s allies, the Australian government said in its Future Gas Strategy unveiled last year.

“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions,” Minister for Resources and Northern Australia Madeleine King said at the time.

Shell, PetroChina Sanction Phase 2 of Surat Gas Project

by Jov Onsat|Rigzone Staff | Wednesday, August 14, 2024

PetroChina Co. Ltd. and Shell PLC have agreed on an additional investment in the Surat Gas Project (SGP), their joint venture in Australia that is targeted to produce about five trillion cubic feet of natural gas over 27 years.

Like phase one, which was approved by the partners 2020, phase two will supply a Shell-operated liquefaction plant on Curtis Island in the state of Queensland, Shell said in a statement. The liquefied natural gas (LNG) is meant for export, but the Surat Gas Project will also deliver gas for the domestic market.

Phase two, or SGP North, has an expected peak output of about 130 million cubic feet a day, with up to 450 production wells targeted to be drilled. Shell expects to start production 2026.

The Surat Gas Project is operated by the British energy giant and state-backed PetroChina’s 50-50 joint venture Arrow Energy Pty. Ltd.

Arrow said in a separate press release construction is scheduled to start later in 2024. The infrastructure will include a new field compression station and a 27-kilometer (16.8 miles) pipeline. Works also include upgrades for roads and other existing infrastructure.

Meanwhile phase one, which consists of over 600 wells, has an expected peak production of 90 billion feet a year according to Shell’s announcement of the final investment decision April 17, 2020.

The Surat Gas Project, which targets coal seams in the namesake basin, is part of Arrow’s 27-year agreement to supply QCLNG (QCG), the operator of the Queensland LNG facility. QCG is a joint venture operated by Shell with a 73.75 percent stake, with state-owned China National Offshore Oil Corp. and EIG Management LLC owning 25 percent and 1.25 percent respectively. Last year QCG supplied 15 percent of gas demand on Australia’s east coast according to Shell.

“QCLNG marked its 1000th cargo at the end of last year, reflecting its significance as a gas supplier for Australia and the region”, said Zoë Yujnovich, director for integrated gas and upstream at Shell. “This investment will enable us to sustain and grow this important, secure energy source that offers a lower emissions alternative to options like coal”.

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