Project Profile
Location: Bowen Basin, approximately 400km south of Townsville and 170km west of Mackay
Start-up Year: - September 2004
The Moranbah Gas Project (MGP) is located in the Bowen Basin, approximately 400km south of Townsville and 170km west of Mackay. Arrow and AGL Energy jointly acquired Enertrade’s gas merchant business from the Queensland Government in December 2007. The upstream joint venture consisting of Arrow, Shell Group, and AGL Energy, now has gas supply agreements with Queensland Nickel Industries and Copper Refineries for up to 6.0 PJ/year and 0.25 PJ/year respectively. The balance of production is fed to the Townsville Power Station. The joint venture also has a gas supply agreement with Incitec Pivot to supply on a take or pay basis 7.0 PJ/year over a period of 15 years commencing in 2010.
Gas Production
The Moranbah Gas Project is one of the largest operating coal seam gas projects in Australia. Total production for the year ended 30 June 2010 was 17.32 PJ, a13 percent increase compared to the prior year. For the quarter ended 30 June 2010, total production was 4.21 PJ.
Reserves
Independent reserve certifiers Netherland, Sewell & Associates, Inc. confirmed a reserves base at the MGP with the certification resulting in IP, 2P and 3P gross reserves of 292 PJ, 882 PJ and 1940 PJ respectively.
Principle Exploration Targets
The Moranbah Coal Measures have traditionally been targeted but recent testing of the Fort Cooper Coal Measures (FCCM) showed net coal thicknesses of up to 50 metres and high gas contents. The FCCM seams are laterally extensive across the Moranbah area.
Moranbah Gas Processing Facility
Arrow Energy and AGL Energy acquired the Moranbah Gas Processing Facility (MGPF) from Enertrade. Operated by Arrow, the MGPF currently comprises inlet gas conditioning, four 2.6MW reciprocating gas engine compressor units, a triethylene glycol gas dehydration unit and export gas metering and monitoring. The facility is used to process gas for injection into the North Queensland Gas Pipeline. The gas will be transported to Gladstone through the 600km Arrow Bowen Pipeline.
Operators:
Arrow Energy: Operator with 50% interest
Shandong Order Gas Co: 25% interest
Orient Energy Pty. Ltd: 25% interest
Contractors:
Netherland, Sewell & Associates Inc.: Confirmed reserves
Clough Seam Gas: EPC contract
Clough AMEC joint venture: US$75 million front end engineering design (FEED) contract for Arrow Energy’s proposed Bowen Gas Project in central Queensland involving front end engineering to support the next phase of Arrow’s work to develop and commercialise its significant Bowen Basin gas reserves. The FEED scope includes engineering, procurement and contracts award for the early works. The FEED contract will commence on 6 October 2014 and is expected to continue for up to 12 months.