BREAKING: Huge gas pipeline to Gladstone has licence approval

1st May 2017 12:48 PM

A PROPOSED pipeline connecting the resource rich Bowen Basin and Gladstone is one step closer.

Arrow Energy's 428km Bowen Pipeline, which will deliver coal seam gas from the Bowen Basin fields near Moranbah to Gladstone, will receive its petroleum pipeline licence this week.

The proposed Bowen Pipeline involves constructing a buried high-pressure steel pipeline to transport coal seam gas from the Bowen Basin to a gas hub 22km north west of Gladstone.

if built, it's hoped it will help supply Gladstone's three Curtis Island LNG export plants, which are under scrutiny over a looming domestic gas shortage.

The Department of Natural Resources and Mines confirmed the PPL was issued on April 28, and the company is expecting an official notice this week.

The approval follows setbacks caused by "production challenges” in the Bowen Basin last year, which delayed both the Bowen Gas Project and the Arrow Bowen Pipeline.

"In the meantime, Arrow has continued to progress project planning and secondary approvals, which included applying for a petroleum pipeline licence and an Environmental Authority for the Arrow Bowen Pipeline,” an Arrow Energy spokesperson said.

"Further technical work is currently being undertaken to improve production from parts of the Bowen Basin and impacts on project schedule are not yet known.”

The environmental approval was granted in November 2016 by the Department of Environment and Heritage Protection.

The pipeline and Bowen Gas Project are Arrow's major gas proposals for Queensland, after in January 2015 the company confirmed it would not proceed with a stand-alone Arrow LNG plant on Curtis Island.

Timeline:

March 2013: The pipeline's Environmental Impact Statement received Queensland Government approval.

October 2014: Environmental approval received from Federal Government.

December 2014: Front-end engineering design (FEED) starts for proposed Arrow Bowen Pipeline, which gives a basic engineering design for the project.

Early 2016: FEED completed.

April 2017: Petroleum Pipeline Licence approved.