Arrow's Bowen Basin CSG Project Gets Federal Approval

The Australian government's environment ministry on Tuesday approved Arrow Energy’s proposed Bowen gas project paving the way for exploration and development of coal seam gas reserves in Queensland’s Bowen Basin. 

The proposed Bowen gas project covers an area west of Mackay in central Queensland, extending from Glenden in the north to Blackwater in the south. The Bowen Basin contains one of Australia's largest (in terms of area) and oldest CSG-producing fields. The Bowen project lies adjacent to Arrow's existing Moranbah Gas Project (MGP), which has been producing CSG for the domestic market since 2004.

Last month, the project got approval from the state government.

The proposed project involves a major, staged expansion of Arrow's existing domestic CSG production in the Bowen Basin, to supply gas to the domestic market and for the production and export of liquefied natural gas (LNG).

Arrow, an integrated CSG company, is owned by Shell and PetroChina which formed a 50:50 joint venture partnership to wholly acquire the company in August 2010.