Shell has announced plans to invest in the second phase of development at Arrow Energy's Surat gas project in Queensland, Australia, according to a statement released on Monday.
This phase will involve the construction of up to 450 production wells, new pipelines, roads, and infrastructure improvements. Shell anticipates that this investment will yield an internal rate of return surpassing the set hurdle rate for its integrated gas business.
While Shell did not reveal the financial specifics of the investment when contacted by Reuters, the gas produced from the project, which is a joint venture between Shell and PetroChina, will be directed to the Shell-operated QCLNG liquefied natural gas facility near Gladstone.
The second phase of the project is projected to add approximately 22,400 barrels of oil equivalent per day at its peak production, with the first gas expected to flow in 2026.
