Arrow Energy takeover complete
LNG proponent Arrow Energy was swallowed up by Shell and PetroChina on the weekend.
The acquisition follows an offer in March to purchase 100 per cent of the shares of Arrow, a 50/50 joint venture company owned by Shell and a subsidiary of PetroChina (CS CSG (Australia) Pty Ltd).
Shell and PetroChina can now proceed with their plans for a major LNG facility on Curtis Island alongside British Gas QGC (Queensland Curtis LNG), Santos (GLNG) and Origin (APLNG).
The Shell and PetroChina liquefied natural gas (LNG) project on Curtis Island is now called Arrow LNG.
In a statement, Shell and PetroChina said they expected to make the final decision on the Curtis Island investment, which may be a stand-alone operation or preferably a joint venture with one of the other three Curtis Island LNG projects.
The Curtis Island project will use gas resources supplied from CSG tenements in the Surat and Bowen basins in South-East and Central Queensland.
A pipeline will bring gas from the tenements to the Curtis Island LNG plant where it will be processed and exported to international markets.
Premier Anna Bligh has welcomed the successful completion of the acquisition of Australian coal seam gas company, Arrow Energy Limited.
“This deal brings together Shell's knowledge in LNG and PetroChina's access to the Chinese energy market and is a major boost for the coal seam gas and LNG industry in Queensland.
“What this deal means is the big players are in town and they mean business.”
The Premier said the deal could see CS GSG (Australia) accelerate the delivery of the proposed Curtis Island facility that could process up to 16 million tonnes of LNG per year.
The community consultation process for the Environmental Impact Statement for the Arrow LNG plant on Curtis Island has begun and community information sessions will be held in Gladstone on September 1.