Arrow Energy will develop 143 wells in SGP Central to raise the gas supply in Queensland with first production scheduled for 2028.
Arrow Energy, a joint venture of Shell and PetroChina, approved the development of Surat Gas Project Central (SGP Central) the next phase of its gas project in Queensland, Australia. The expansion will incorporate 143 wells and will have the capacity to produce around 79 million cubic feet of gas per day.
The company, 50% owned by Shell and PetroChina, expects to obtain the first gas from this new phase in 2028. The development will be located south of Chinchilla and is part of the Surat Gas Project expansion program.
SGP Central will add 143 gas wells in Queensland
Specifically, SGP Central will comprise 143 infill wells designed to sustain and expand the project’s production. At its peak, the new phase will be able to contribute approximately 79 million cubic feet per day, equivalent to roughly 84 terajoules of gas per day.
The gas produced will have two main destinations: part will supply the Australian domestic market, while the remainder can reach international liquefied natural gas customers via the Queensland Curtis LNG (QCLNG) facility, operated by Shell and Curtis Island.
This supply is also part of the long-term gas sales agreement between Arrow Energy and Shell QGC, the contract has a duration of 27 years and supports the development of gas resources at the Surat Gas Project.
The Surat Gas Project is progressing through new phases
The project, for its part, obtains natural gas from coal seams in the Surat Basin, its development area extends across Queensland and includes the Miles, Chinchilla, and Dalby areas.
Arrow Energy is already working on the SGP North expansion near Miles, where the program includes 250 production wells. That phase achieved its first gas production in November 2025.
Now, the approval of SGP Central allows progress to be made on another area of development and maintains the progressive growth of production. The entire project is designed to operate for decades under the supply agreement established with QCLNG.
The gas will supply the Australian market and LNG exports
Furthermore, the new production will play a role in both domestic supply and the Australian supply chain LNG export QCLNG allows the processing and export of gas from Curtis Island and is also connected to the supply of the Australian east coast.
Shell believes that maintaining investments in new gas developments is important to meet the country’s energy demand and fulfill export commitments.
Gas is a stabilizing factor in the energy system as we move towards decarbonization, and Australia benefits enormously from having a strong and well-supplied domestic market, supported by a thriving export sector.
Cecile Wake, executive vice president of Shell Australia.
The executive added that continuing to develop gas resources is relevant to Australian energy security, export contracts, and Queensland’s economic activity.
Arrow Energy expects to begin production in 2028
Finally, Arrow Energy expects to obtain the first gas from SGP Central in 2028 the company links this next stage to its long-term development strategy in Western Downs and to new opportunities for regional suppliers.
During the period 2025-2026, Arrow allocated 73 million Australian dollars to the Western Downs and Toowoomba regions.
SGP Central represents an exciting step forward as we continue to advance the Surat Gas Project and transform our long-term commitment to Western Downs into tangible results for the communities.
Xinmiao Tong, chief executive officer of Arrow.
With the approval of this phase, the Shell and joint venture PetroChina it expands the development of the Surat Gas Project while preparing new capacity for the Australian market and the LNG export chain.
Source: Upstream
Photo: Arrow Energy
