Under the proposed deal CS CSG Australia – a joint venture between Shell and PetroChina – will acquire Arrow’s Queensland coal seam gas (CSG) assets and domestic power business.
CS CSG Australia will also own Shell’s Queensland CSG assets and its site for a proposed LNG plant on Curtis Island at Gladstone.
Arrow currently has interests in two of the proposed CSG to LNG projects to be located in Gladstone, Queensland, one of which is a joint venture with Shell.
The Shell Australia LNG Project is expected to produce up to 16 million tonnes per annum of LNG and involves the phased construction of up to four LNG processing trains on Curtis Island, with CSG drawn from acreage jointly owned by Shell and Arrow in southeast and central Queensland.
Arrow’s Gladstone “˜Fisherman’s Landing’ LNG Project will see the construction of an LNG plant at Fisherman’s Landing, fed by CSG sourced from Arrow’s gas fields.