Shell, PetroChina to expand massive Surat coal seam gas project

Shell and PetroChina will expand the massive Surat coal seam gas project in Queensland, a decision that will be met with dismay from environmental activists but which should provide supply for an increasingly stretched energy market.

Gas from the project expansion will supply both domestic and export customers through the Queensland Curtis LNG plant near Gladstone. The project, the second phase of the Arrow Energy joint venture, is expected to supply 130 million cubic feet a day of gas at peak production, enough to power almost one million homes.