Shell Greenlights $6.4 Billion Australia Natural Gas Project
SYDNEY (Reuters) — Royal Dutch Shell said on Friday it had made a final investment decision to develop the first phase of Australia’s biggest coal seam gas resource in Queensland state.
The first phase of the Surat Gas Project would bring as much as 90 billion cubic feet per year of new natural gas to market at peak production, Shell said in a statement.
The project is being developed by a Shell and PetroChina joint venture called Arrow Energy. Construction will start this year and its first gas sales are expected in 2021.
Shell did not provide a headline figure for the investment, though Queensland state Premier Annastacia Palaszczuk pegged the project at A$10 billion ($6.4 billion) in a joint press conference with Arrow CEO Cecile Wake.
The investment is a timely injection of cash for Australia’s A$2 trillion economy now on the verge of its first recession in three decades as businesses shut to fight the new coronavirus, throwing tens of thousands out of work.
Authorities are also eager to see the Surat project start up as Australia’s southeastern states face gas shortages by the mid-2020s.
Palaszczuk welcomed the decision, saying the biggest gas project the state has seen since 2011 would be a shot in the arm for its economy.
“The first phase will mean 200 jobs and we should see people out in the field around August, September this year,” said Palaszczuk, who is facing an election within months.
Related News
Related News
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
- Williams Seeks Emergency Certificate to Operate $1 Billion Mid-Atlantic Gas Pipeline After Court Reversal
- U.S. Court Overturns FERC Approval for NextDecade’s $18 Billion Rio Grande LNG Project
- Saudi Arabia Looking to Expand Pipeline to Reduce Oil Exports via Gulf
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Puerto Bahia, Gasco to Build Liquefied Petroleum Gas Facility in Cartagena, Colombia
- Sempra's Costa Azul LNG Project Delayed by Labor Issues
Comments