$10b Surat Basin gas project gets green light to start operating next year

The state’s biggest new resources project in eight years has been given the go ahead with Arrow Energy’s $10 billion Surat Basin gas project scheduled to start operating next year.

Queensland Premier Annastacia Palaszczuk in Question Time this week. Picture: Dan Peled/AAP

THE State Government has approved the biggest resources project in nearly a ­decade: the $10 billion Arrow Energy Surat Basin gas project.

Premier Annastacia Palaszczuk said the project, which is expected to create up to 1000 jobs, would produce 5000 peta­joules of gas over 27 years for domestic and export markets.

“This is the biggest resources project since 2011 when the LNG projects were sanctioned,” Ms Palaszczuk said.

She said final approvals for the project were signed last week, providing Arrow with 14 petroleum leases covering about 2500sq km, on blocks between Dalby and Chinchilla on the Western Downs.

Queensland Resources Council chief executive Ian Macfarlane said the approvals were a significant vote of confidence in the Queensland gas industry and would create more jobs, exports and royalties.

“We are now reaping the benefits of an industry that supports more than 39,000 jobs and injects $8.2 billion into the Queensland economy,” he said.

While continued investment in Queens­land’s gas industry was in stark contrast to lack of action in other states, the government could not take the industry for granted, he said.

“The Arrow Energy project is a welcome addition to our state’s diverse resources sector but we must ensure more projects are developed across our full range of commodities, including gas, coal, metals and other minerals,” he said.

“Only stable and predictable policy with a clear set of rules will ensure investment in exploration leads to new investment, new jobs and new exports for Queensland.”

Natural Resources and Mines Minister Anthony Lynham said the project would use existing infrastructure, including processing facilities and pipelines to transport gas to domestic and export facilities.

“It will get gas to the market faster and it significantly reduces the project footprint and the potential impact on local communities and the environment,” Dr Lynham said.

Construction is expected to start later this year with first gas forecast to flow from 2020.