Shell has given the green light for the development of the first phase of a major gas project in the Australian state of Queensland. This is the Surat gas project being developed by Arrow Energy, a partnership of Shell and PetroChina.

The project revolves around Arrow’s gas reserves in the Surat Basin in Queensland. That gas will mainly be intended for the local market and for export, such as to China, Korea and Japan. The first production is to start in 2020 and the first sale is expected for next year.

The coal seam gas in the Surat Basin is supplied to the Queensland Curtis LNG plant. Queensland Curtis LNG is a large liquefied natural gas production plant.