Santos, with its GLNG partners, plans to invest more than $400 million on the 137-well Arcadia gas project in Queensland’s Bowen Basin.
The investment adds to the $900 million Santos is investing in upstream developments in the Maranoa, Western Downs, Central Highlands and Banana regions in Queensland.
Santos managing director and chief executive officer Kevin Gallagher said the Arcadia gas project would create up to 300 construction jobs and local business opportunities in the Central Highlands region.
“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,” Gallagher said.
The project, about 680km northwest of Brisbane near Injune, will involve drilling 137 new wells and constructing a 140km gas and water gathering network, two 4G communication towers, a new compression station, a 4ML per day water treatment plant, a 5MW gas-fired power station, and associated roads and infrastructure.
Gallagher said the decision to sanction the project followed a successful 13-well pilot program which tested changes to the planned well design and operating philosophy.
“We have reduced our connected well costs in Queensland by more than 70 per cent since 2015 to become Australia’s lowest cost onshore operator,” Gallagher said.
“If you want to put downward pressure on gas prices, reducing the cost of supply is a good place to start.”