Shell want cooperation with LNG resources
ARROW energy is committed to using its natural gas resources but that might not mean constructing the stalled fourth liquified natural gas plant on Curtis Island.
Owner of Arrow Energy, Royal Dutch Shell, bought BG Group and with it QCLNG for US$49 billion in March and chief executive officer Ben van Beurden said the company would look at a "broad industrial logic" with the two resources.
At the LNG18 conference in Perth this week Mr van Burden said Shell had invested a lot of resources into Arrow and "need to see the Arrow resources come into full development".
"It's a different reality now of course in the fact that we are also owners of a part of Queensland Curtis LNG," he said.
"We have to look at what is the broad industrial logic of bringing these projects and that whole area where there is some quite interesting fundamental challenges around gas availability, pace of development.
"There is a broad industrial logic to do something where both Arrow and other ventures will benefit from each other"
Cooperation between the LNG plants on Curtis Island was one finding from "The good, the bad and the ugly" report on LNG production released by Deloitte for the conference.
The findings from the report came from interviews with 10 Australian LNG leaders.
One of these was the industry did not forecast the impact it would have by building all the plants at once.
"Collaboration among the companies was virtually non-existent and this led to a dramatic over-building of infrastructure," the report reads.
"For example, the three large LNG projects in Queensland don't even share a road."
Another was the impact on local markets.
"LNG companies did not give a great deal of forethought to how still competition among multiple operators would affect local wage rates," it reads.
"As described by one survey participant, a journeyman carpenter, whose task was to build forms for pouring concrete, commanded $250,000 per year at the height of the building activity."