Arrow today said it has been supplying contract services to Anglo over the last year using surface to in-seam drilling technology. It has used the technology to drill horizontal wells to maximise extraction of gas ahead of the mining operation.

The wells now in place are capable of producing about 4 terajoules per day, Arrow said.

The Moranbah North gas will now be transported to Arrow’s Moranbah Gas Project (MGP) via a new pipeline system that has been recently installed.

“Subject to final agreement with current Arrow gas customers, the gas extracted will be delivered to the MGP joint venture and sold into existing contracts,” Arrow said.

“This will assist in reducing future greenhouse emissions at the mine as well as deferring capital that would have been spent on the MGP and preserving gas reserves to maintain future gas contract supplies.”

The MGP is held in equal partnership between Australian Gas Light and Arrow, which is also the operator and has the sole exploration, operating, and marketing rights over all of the underlying exploration tenement area of ATP 364P in the northern Bowen Basin region.

It is Australia's largest coal seam methane project.