Moranbah Gas Project.
LOCATION
The Moranbah Gas Project (MGP) is located in the Bowen Basin, approximately 400km south of Townsville and 170km west of Mackay.
EQUITY
Arrow Energy 35% (Operator), Shell Group 15%, AGL Energy 50%
FIRST GAS
First gas was sold from the field to Enertrade in September 2004.
GAS CONTRACTS
Arrow and AGL Energy jointly acquired Enertrade’s gas merchant business from the Queensland Government in December 2007. The upstream joint venture consisting of Arrow, Shell Group, and AGL Energy, now has gas supply agreements with Queensland Nickel Industries and Copper Refineries for up to 6.0 PJ/year and 0.25 PJ/year respectively. The balance of production is fed to the Townsville Power Station. The joint venture also has a gas supply agreement with Incitec Pivot to supply on a take or pay basis 7.0 PJ/year over a period of 15 years commencing in 2010.
GAS PRODUCTION
The Moranbah Gas Project is one of the largest operating coal seam gas projects in Australia. Total production for the year was 15.33 PJ, an 8.9 percent decrease compared to the prior year. The decline was due to a scheduled shutdown of the Townsville Power Station for seven weeks during the second quarter. The field’s daily production average returned to pre-shutdown levels during the third quarter. The quick return of the field to production levels as seen before the shutdown suggested that the reservoir was unaffected by the field shut in. Total gas production in the fourth quarter was close to record highs. 140 wells are now online, up from 81 in the prior year. For the year ended 30 June 2009, the Moranbah Gas Project’s best well was flowing at an average rate of 1.15 TJ per day.
RESERVES
In 2008, independent reserve certifiers Netherland, Sewell & Associates, Inc. confirmed a reserves base at the MGP with the certification resulting in IP, 2P and 3P gross reserves of 287 PJ, 852 PJ and 1865 PJ respectively.
PRINCIPLE EXPLORATION TARGETS
The Moranbah Coal Measures have traditionally been targeted but recent testing of the Fort Cooper Coal Measures (FCCM) showed net coal thicknesses of up to 50 metres and high gas contents. The FCCM seams are laterally extensive across the Moranbah area.
MORANBAH GAS PROCESSING FACILITY
Arrow Energy and AGL Energy acquired the Moranbah Gas Processing Facility (MGPF) from Enertrade. Operated by Arrow, the MGPF currently comprises inlet gas conditioning, four 2.6MW reciprocating gas enegine compressor units, a triethylene glycol gas dehydration unit and export gas metering and monitoring. The facility is used to process gas for injection into the North Queensland Gas Pipeline.
