“As a result, Shell could choose to direct more (and possibly all) of Arrow’s large gas reserves towards meeting BG’s contracts to supply LNG export markets.”
BG owns the $24 billion Queensland Curtis LNG project. Shell and PetroChina meanwhile are equal joint venture partners in the Arrow Energy operation in Surat and Bowen Basins. Arrow Energy delivers almost 20 per cent of Queensland’s natural gas from five CSG fields.
The major concern is that if Shell acquires major interest in BG’s Curtis LNG project, domestic supplies from Arrow will be shifted offshore.