Arrow pushes on with plan to build gas pipeline

ARROW Energy has given public notification of its plan to build a 580km coal seam gas pipeline from Moranbah to Gladstone.

The proposed Arrow Bowen Pipeline is a buried high-pressure steel pipeline to transport coal seam gas from the Bowen Basin to a gas hub 22km west of Gladstone, where it will join the proposed Arrow Surat Pipeline.

The pipeline will be between 610mm to 860mm in diameter and it will be buried at least 750mm.

The route begins in the southern part of the Whitsunday region and runs south through the Isaac, Rockhampton and Gladstone local government areas.

Arrow said it had selected the route to minimise impacts on communities, environmentally sensitive areas like essential habitats, endangered and threatened ecosystems, and native vegetation.

A 40m right-of-way will need to be cleared so the crew can work safely and minimise impacts on the surrounding land.

During construction, work at any point will last around three to six months, depending on the weather.

Arrow said once construction had finished, the right of way would be rehabilitated.

The pipeline's environmental impact statement was approved by Queensland Government in March last year.

An application for Commonwealth approval is being assessed.

Arrow Energy received federal government approval in December to build a fourth LNG plant on Curtis Island, but general consensus in the marketplace seems to be that the project won't go ahead.

Earlier this year Shell confirmed it was unlikely to give the $10 billion plant the go-ahead this year, but it remained on the cards.

"We recently… postponed the final investment decision on the Arrow LNG project in Australia. We didn't like the economics and inflation risks on these proposals," new chief executive Ben van Beurden said.

"We are not expecting any major financial investment decisions in Asia Pacific LNG in 2014."

Arrow LNG was originally due to make a final investment decision on the project late last year, but delayed it.

The Arrow LNG project is a 50-50 joint venture between Shell and Chinese major PetroChina.