Arrow Energy has given the green light for the first phase of its $10 billion Surat Gas Project in southern Queensland, with construction set to begin this year.

It is expected to create 200 construction jobs during phase one, with a further 800 construction and operating roles over the life of the project.

The commitment was welcomed by Queensland Premier Annastacia Palaszczuk, who said the project would mark another milestone in Queensland’s economic recovery from COVID-19.

“We have made very encouraging progress in managing the health impacts of this pandemic,” she said. “But it’s projects like this – and the more than 1000 jobs it will generate – that will help us to our economic recovery.”

Queensland Resources Council chief executive Ian Macfarlane described it as good news when the State needed it most.

Arrow said its sanction decision followed the announcement of a final investment decision from its shareholders, PetroChina and Shell.

Arrow chief executive officer Cecile Wake said the CSG project – between Dalby and Wandoan – was underpinned by a significant infrastructure collaboration and gas sales agreement between Arrow and the Shell-operated QGC joint venture.

“This agreement enables the use of capacity in QGC’s existing gas and water processing, treatment and transportation infrastructure, reducing the impacts on landholders, communities and the environment and ensuring that more gas can be economically developed,” Ms Wake said.

Ms Wake said Arrow would this year commence construction of more than 600 phase one wells. It is targeting first gas from the project in 2021.

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