Arrow Energy LNG Terminal

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This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.
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Arrow Energy LNG Terminal was a proposed LNG terminal in Queensland, Australia.

Location

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Project Details

  • Owner:
  • Parent: Petrochina, Shell
  • Location: Curtis Island, Gladstone, Queensland, Australia
  • Coordinates: -23.6243946, 151.1444092 (approximate)
  • Capacity: 16 mtpa, 2.29 bcfd
  • Status: Cancelled
  • Type: Export
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Arrow Energy LNG Terminal was a proposed LNG terminal in Queensland, Australia.[1] It was planned to be supplied by coal seam gas. Shell cancelled the project in 2015 because of cost concerns.[2][3]

Natural Gas in Australia

As of 2017, Australia is the second largest LNG exporter after Qatar. The country exports almost 44 million tons a year. [4]

Australia's Coal Seam Environmental Concerns

Arrow Energy LNG was to use coal seam gas.

In December 2014, Queensland Curtis LNG became the world's first project to turn coal seam gas into LNG for export. Curtis Island's two other LNG plants, Queensland Curtis LNG Terminal and Gladstone LNG Terminal also convert coal seam gas into LNG.[5]

Coal seam gas projects in Australia are not without controversy. Coal seam gas (abbreviated "CSG") is formed by the geological process of heating and compressing plant matter to create coal. Over millions of years, methane forms within the coal. The methane is trapped by water in the gaps and cracks between the coal molecules. These gaps are known as cleats. Australia has been found to have many deposits, and is increasingly mining them through hydraulic fracturing, also known as fracking.[6]

CSG is a form of coalbed methane (CBM), or coalbed gas, and is a type of natural gas extracted from coal beds. In recent decades it has become an increasingly used source of energy in Australia, as well as the United States, Canada, and other countries.[6]

Australian green groups and farmers have raised concerns about coal seam gas development. In May 2010 four toxic chemicals - benzene, toluene, ethylbenzene and xylene (BTEX) - were discovered in eight exploration wells owned by the Australia Pacific LNG Terminal in the Surat Basin. But the Queensland Government has ruled out a moratorium on the industry.[7]

Articles and resources

References

  1. Arrow Energy LNG Terminal, A Barrel Full, accessed April 2017
  2. Shell cancels Arrow LNG project, Oil & Gas Journal, Jan. 30, 2015
  3. Matt Chambers, "Arrow Energy’s $850m gas supply boost," Weekend Australian, March 14, 2017
  4. Qatar Moves to Ensure LNG Dominance, Arab Gulf States Institute in Washington, April 17, 2017.
  5. Zara Margolis and Cassandra Hough, "Queensland company to be first in the world to export LNG from coal seam gas," ABC, December 23, 2014.
  6. 6.0 6.1 Jargon Buster. BG Group. Retrieved on 18 July 2010.
  7. "Federal Government approves coal seam gas projects in central Queensland" news.com.au, Oct. 22, 2010.

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