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Shell and CNPC expand Australia Arrow Energy Daandine on fast track

Shell and CNPC build up gas capacity for Arrow LNG

The international oil company (IOC) Royal Dutch Shell (Shell) and its partner, the national oil company (NOC), China National Petroleum Corporation (CNPC or PetroChina) have decided to move on fast track for the execution of their shared subsidiary Arrow Energy Pty Ltd (Arrow) gas Daandine Expansion project in the Surat Basin of Queensland, Australia.

While Shell and PetroChina decided to postpone their Arrow liquefied natural gas (LNG) project in reaction to the spiraling costs in Australia, they are willing to continue to build up gas production capacity on the upstream side with this coal seam gas Daandine Expansion project.

Shell_PetroChina_Arrow_Baandine_Expansion_Project_MapLocated in the Surat Basin, approximately 160 kilometers west of Brisbane, Daandine Expansion belongs to Arrow Surat Gas Project together with other gas production fields in Kogan North,  Strathenden and Tipton West.

All these fields are spread around the City of Dalby in the north direction toward Wandoan and in the south direction toward Goondiwindi in the southeast of Queensland state.

As Arrow upstream largest project, the Surat Basin Project is developed in phases.

In phasing the project, Arrow is not only willing to reduce financial risks and adjust on local demand, but also to learn from the first wells to improve the production performances from phase to phase in a complex process.

In that respect the Daandine Expansion project was planned in three phases.

In September 2006, the Daandine first phase started its first commercial operations ramping up the production up to 7.9 pentajoules (PT) in 2010.

With the Daandine Expansion project, Arrow is targeting to add 18.5 terajoules(TJ) per day production capacity, representing a 60% increase.

The Daandine Expansion project will take this new gas capacities from the Daandine field and the Stratheden field.

Clough AMEC won Arrow Daandine Expansion EPCM

The Daandine Expansion project will include:

Shell_PetroChina_Arrow_Baandine_Expansion_Project – New well pads

 – Additional gas gathering pipeline system

 – Additional water distribution pipeline system

 – Process improvement of the reverse osmosis facility

 – Expansion of the gas central processing facility

 – Offsite and utilities

In order to reduce the environmental impact of the coal seam gas fields and to optimize the exploration and production, Arrow developed new solutions on the well pads.

Arrow well pads new design enables to drill eight wells from the same well pad.

In addition the so called “plough-in” pipeline installation technique minimizes the trenching work with all its consequences.

In the Daandine gas central processing plant, Arrow will add three new gas-driven compressors.

From these fields operations improvements, Shell and PetroChina has decided to speed up the Surat Basin in beginning with the Daandine Expansion project.

In order to help this good implementation of this Daandine project, Arrow awarded the engineering, procurement and construction management (EPCM) contract to the tandem Clough AMEC.

To be executed on fast track, the tandem Clough AMEC is due to deliver the Arrow Daandine Expansion project to Shell and PetroChina on early 2016 in order to build up gas production capacity for the future Arrow LNG project.

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