Santos' $400m gas well project with 300 jobs going ahead
SANTOS is moving ahead with its $400 million gas project in Queensland's south, tipped to create 300 construction jobs and drive downward pressure on gas prices.
Confirming its investment into the 137-well Arcadia gas project, near Injune in the Bowen Basin, Santos' Kevin Gallagher said once finished, it would increase gas supply for the GLNG project on Curtis Island.
The chief executive officer and managing director said confirmation of Santos' final investment decision on the project was "great news" for the domestic gas market and LNG exports.
The project will involve drilling 137 new wells and constructing a 140 km gas and water gathering network, two 4G communication towers, a new compression station, a 4 ML per day water treatment plant, a 5 MW gas-fired power station, and associated roads and infrastructure.
"This initial phase of the Arcadia development will at its peak deliver in excess of 75 TJ/day to the gas supply for the GLNG project," Mr Gallagher said.
Mr Gallagher said the decision to sanction the project followed a 13-well pilot program which tested changes to the planned well design and operating philosophy.
"We have reduced our connected well costs in Queensland by more than 70 per cent since 2015 to become Australia's lowest cost onshore operator," Mr Gallagher said.
"If you want to put downward pressure on gas prices, reducing the cost of supply is a good place to start.
"Santos will apply our low cost operating model, and a well design and water management approach tailored for the Arcadia field, to extract more gas for less money."