Shell to invest in phase 2 of Surat gas project in Australia

(Reuters) -Shell plans to invest in the second phase of development at joint venture Arrow Energy’s Surat gas project in Queensland, Australia, the global energy giant said on Monday.

The second phase of development will include up to 450 production wells, new pipeline and road and infrastructure upgrades, Shell said in a statement.

The investment is expected to generate an internal rate of return in excess of the hurdle rate for Shell’s integrated gas business, the energy giant said.

Shell did not disclose any details on the investment value when Reuters contacted.

The gas from the project owned by Arrow Energy, a joint venture between Shell and PetroChina, will be supplied to Shell-operated QCLNG liquefied natural gas facility near Gladstone.

The second phase of development at the project is expected to contribute around 22,400 barrels of oil equivalent per day at peak production and first gas is expected in 2026, Shell said.

(Reporting by John Biju in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)