Shell And PetroChina To Develop Phase 2 Of Surat Gas Project: Details

Author: Lekha Gupta | August 12, 2024 05:51am

Shell plc (NYSE:SHEL) and PetroChina joint venture, Arrow Energy, plans to develop Phase 2 of the Surat Gas Project in Queensland, Australia.

The gas will be routed to Shell's QCLNG facility on Curtis Island to meet long-term contracts and domestic demand.

Phase 2, part of a 27-year agreement with QGC, is expected to add about 22,400 barrels of oil equivalent per day (130 million standard cubic feet per day) at peak production. The companies project its first gas in 2026.

Zoë Yujnovich, Shell's Integrated Gas and Upstream Director said, "QCLNG marked its 1000th cargo at the end of last year, reflecting its significance as a gas supplier for Australia and the region. This investment will enable us to sustain and grow this important, secure energy source that offers a lower emissions alternative to options like coal."

Notably, Shell and PetroChina established the Arrow Energy joint venture in 2010.

In 2017, Arrow secured a 27-year gas sales agreement to supply Shell's QCLNG joint venture, with phase 1 of the Surat Gas Project, approved in April 2020, including over 600 wells.

Last week, the units of Shell and BP p.l.c. (NYSE:BP) in South Africa are reportedly expected to pay about $15 million to the state-run Central Energy Fund for operational costs at the Sapref refinery, which they are selling to the government.

Shell stock has gained around 16% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF (NYSE:HJEN) and VanEck Natural Resources ETF (NYSE:HAP).

Price Action: SHEL shares closed higher by 0.74% at $71.88 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image by siam.pukkato via Shutterstock

Read Next:

• Shell’s Mixed Bag: Q2 Revenue Beats Expectations, But Profit and Production Decline Sequentially

Posted In: BP HAP HJEN SHEL