Santos, together with its GLNG partners, will be investing more than $400 million towards the development of the Arcadia gas project in Queensland’s Bowen Basin.
The Arcadia project is located near Injune and approximately 680 kilometres north west of Brisbane. The development will involve drilling 137 new wells as well as the construction of a 140-kilometre gas and water gathering network.
In addition, the project will also include building two 4G communication towers, a new compression station, a 4ML a day water treatment plant, a 5MW gas-fired power station as well as associated infrastructure and roads.
The investment on Arcadia adds to Santos’ $900 million upstream projects in the State’s Maranoa, Western Downs, Central Highlands and Banana regions.
“The Arcadia gas project will create up to 300 construction jobs and local business opportunities in the Central Highlands region, helping sustain and boost the benefits Santos’ and GLNG’s earlier investments.
“This initial phase of the Arcadia development will at its peak deliver in excess of 75 TJ/day to the gas supply for the GLNG project. This is great news for both the domestic gas market and our LNG exports,” Santos Managing Director and Chief Executive Officer Kevin Gallagher said.
Mr Gallagher added that the decision to go ahead with the Arcadia development followed the success of a 13-well pilot program that determined the changes needed to be done to the planned well design and operating philosophy.
“Santos will apply our low cost operating model, and a well design and water management approach tailored for the Arcadia field, to extract more gas for less money.
“Santos is delighted to support jobs and investment in regional Queensland and we want to continue to invest here for many years to come,” Mr Gallagher said.
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Source: Australian Mining, Australian Financial Review, Santos, LNG World News