GAS giant Arrow Energy has revealed it will go ahead with plans to expand its Tipton gas project in the Darling Downs.
The company plans to double the site's output to more than 80 terajoules a day, after it undertakes the front-end engineering design phase of the expansion.
The Tipton expansion FEED contract would be awarded within weeks through the company's engineering master service agreement.
"The planned expansion of Arrow's Tipton operations is expected to involve 90 new wells in the initial phase and another 180 wells over the next 25 years - along with new gathering lines, an upgraded water treatment facility and four new compressors," Arrow CEO Qian Mingyang said.
"The PtL project is well under way, and will enable Arrow to run existing compression facilities to their maximum design limits, increasing our current Surat production by up to 30 per cent."
The news has been welcomed by groups like the APPEA and Queensland Resources Council, who said the expansion would help ease pressure on the domestic gas market.
"This initiative - coupled with the recent announcement by QGC, a Shell joint venture, that it will soon start drilling up to 161 additional wells as part of Project Ruby - shows the industry in Queensland is getting on with the job," APPEA Queensland director Rhys Turner.
QRC CEO Ian Macfarlane called the move a "boost for the east coast gas supply".
"The QRC congratulates Arrow on this exciting development which again demonstrates that Queensland is leading the way when it comes to working to address the problem of the east coast gas shortage," Mr Macfarlane said.
"Arrow has a strong record of working with local companies, so this is good news for local businesses and another vote of confidence in Queensland's onshore gas industry.
"We only hope that the other states follow Queensland's lead and open up gas reserves to help fix the energy crisis households and businesses, especially manufacturers, along the eastern seaboard are facing."