Rick Wilkinson
OGJ Correspondent
MELBOURNE, Apr. 17 -- India's energy conglomerate GAIL and Arrow Energy NL, Brisbane, signed a memorandum of understanding outlining areas for joint cooperation and investment in coalbed methane (CBM) projects in Australia and India. The proposed joint venture may also involve other parties.
The alliance will seek prospects for exporting gas to Asia as gas-to-liquids and compressed natural gas. Final terms will be completed in June.
GAIL will invest in and accelerate as many as 10 of Arrow's CBM development projects in Queensland that are awaiting capital. Top priorities are the Clarence-Moreton basin in southeastern Queensland, the Styx River basin north of Rockhampton on the central east coast, and the Nagoorin Graben basin with Tertiary sediments farther south near Gladstone. Drilling has found good coal deposits in these areas.
