Arrow Energy’s plan to construct a multi-billion dollar LNG plant on Curtis Island off Gladstone in Central Queensland has taken a major step forward with the awarding of the front-end engineering design (FEED) contract.


The engineering design, which will be undertaken by CJV, an international consortium comprising the Chiyoda Corporation, CB&I (Chicago Bridge and Iron) and Saipem, will commence immediately, and be carried out in Japan, the United States and Australia over the next twelve months.


The Arrow LNG Plant will be designed with two processing units (trains) each producing nominally four million tonnes of LNG per annum for export, with potential to double the size to four trains that could produce up to 16 million tonnes of LNG each year.


Arrow CEO Andrew Faulkner said the appointment of the CJV consortium was a significant milestone for the company’s LNG project.


“Our FEED contractor will undertake the preliminary engineering, design and planning to provide us with a project specification for our LNG Plant and facilities,” he said.


“The design will use Shell’s proprietary LNG technology.”


Arrow has also recently awarded a Power Supply Concept Select contract to Parsons Brinckerhoff to investigate options for power supply to surface facilities required by Arrow to further develop its coal seam gas projects in the Surat and Bowen Basins.


“In the past year, we have made tremendous progress with our LNG project, expanding our gas supply beyond domestic markets to position Arrow as a major CSG-LNG business,” said Mr Faulkner.


Arrow was acquired by a 50/50 joint venture of Royal Dutch Shell and PetroChina a year ago.