Arrow postpones upstream Bowen Basin plans

A map of the proposed Arrow Bowen Pipeline.

A map of the proposed Arrow Bowen Pipeline.

Production challenges have resulted in Arrow Energy deciding to delay its upstream Bowen Basin development, which involved a gas field expansion and the proposed 500 km Arrow Bowen Pipeline to Gladstone.

An Arrow spokesperson told PPO News that the Bowen Basin, which contains deeper and tighter coals than the company’s holdings in the Surat Basin, presented a number of production challenges.

“Horizontal wells are needed to achieve the required production rates, and the recent wells are not performing as expected at this time,” the spokesperson said.

“Additional work is required to underpin value in Arrow’s investment proposal to shareholders on the Bowen Gas Project and the Arrow Bowen Pipeline.

“Until it is completed, the impacts on project schedules are unknown.”

While a final investment decision for the Arrow Bowen Pipeline has also been postponed, the spokesperson added that Arrow will continue to close out front-end engineering and design (FEED) on the pipeline by the end of 2015.

This article first appeared on the PPO News site. To read more about Arrow Energy’s plans, click here.

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