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Bow Energy Upstream CSG and Gladstone Gas Pipeline Project

Bow Energy Ltd is a Brisbane-based Australian publicly-listed S&P/ASX 200 company primarily focussed on the exploration and development of coal seam gas (CSG) projects within Queensland. Currently the company is pursuing the commercialisation of a project that includes gas reserves located near both Dysart and Blackwater to deliver gas via an underground pipeline to markets in Rockhampton and Gladstone.

The Project involves developing approximately 1500 wells over the life of the Project across Bow's two CSG fields – Norwich Park and Blackwater. The gas from the Norwich Park field will be transported to the Blackwater field via a high pressure 95 kilometre (approximate) underground gas pipeline. From Blackwater, the combined gas quantities will be transported to Gladstone via a high pressure 250 kilometre (approximate) underground gas pipeline that travels east to Rockhampton, and then on to Gladstone. Click here to view pipeline map.

Bow Energy aims to acquire project approvals both environmental and final investment decision (FID) by late 2012 to enable supply of 30 Petajoules of gas per annum (30 PJ/a) to existing or new gas markets in Gladstone by 2015 with future plans to increase supply to 100 PJ/a by 2017.

The Company has also established a regional office in Blackwater to support the development of its Bowen Basin tenements. Bow was established in 2005 with the focus on the discovery of commercial oil and gas fields. In 2009, it was awarded several highly prospective CSG tenements in Queensland's Bowen Basin. Bow's long term strategy is to continue the commercial production of oil assets (predominantly through its current joint venture partners) and to develop CSG tenements, with the intention to supply gas into both domestic and future liquid natural gas (LNG) export markets.

Bow currently holds the largest uncommitted, certified gas reserves in Queensland, within eight CSG fields in the Bowen and Surat Basins.

Overview of the project

Over the next five years, Bow proposes to commercialise its upstream CSG operations within the Blackwater CSG field (ATP 1025P) and Norwich Park CSG field (ATP 1031P) in the Bowen Basin.

The Bow Energy Upstream CSG and Gladstone Gas Pipeline Project will comprise two separate (but related) components (as described below). Each project component will be treated as a single integrated project for the purpose of the EIS and the assessment of each component will also include assessment of design, construction and operational phases. The overall project components include:

1. CSG field development:

Upstream field development activities within ATP 1025P and ATP 1031P, comprising the drilling of exploration and appraisal wells, drilling and completion of pilot wells and production wells, and the construction of gas and water gathering and processing infrastructure, trunklines, gas compression facilities, power distribution and road networks.

2. Development of two separate underground gas pipelines:

  • The construction of a 95 km (approximate) underground gas transmission pipeline from the Norwich Park CSG field (in ATP 1031P) to a proposed Bow Blackwater Gas Hub located in ATP 1025P); and
  • The construction of a 250 km (approximate) underground high pressure gas transmission pipeline connecting the Blackwater Gas Hub via the Gladstone State Development Area to the Gladstone high pressure gas gate station for potential supply to both domestic and export gas markets.

Bow has undertaken several project scoping workshops to detail the needs and timing of the Project. These workshops have resulted in the development of the following key assumptions/project scope parameters:

  • First commissioning gas in Q4 2014
  • Commercial supply of gas (at least 30PJ/a) to be delivered Q1 2015;
  • Pipeline to be capable of delivering up to 100PJ/a; and
  • A pipeline licence and petroleum licenses for the current ATP's are required for the Project, in addition to an EIS.

In order to operate the CSG fields and obtain the pipeline licence, engineering and environmental studies will need to be undertaken and an EIS prepared.

Bow holds a Pipeline Survey Licence (PSL 51) under the P&G Act for the corridor from Blackwater through to Gladstone. Bow has also submitted applications for two new PSLs: PSL 65 for the corridor from Norwich Park to Blackwater and PSL 66 to replace PSL 51 which will expire in mid-April. A PSL allows the holder to undertake survey activities such as environmental investigations and field work to inform the EIS.

 

Map 2

 

map 1