Shell, Arrow complete third stage of alliance

The third stage of the coalseam methane (CSM) alliance between Shell Exploration Co. BV and Arrow Energy Ltd., Brisbane, is completed.

Feb. 13, 2009

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Feb. 13 -- The third stage of the coalseam methane (CSM) alliance between Shell Exploration Co. BV and Arrow Energy Ltd., Brisbane, is completed.

Arrow received the last of the up-front payments of $155 million, which brings the company's total amount received to date to $454 million.

Arrow and Shell pledged to develop Arrow's estimated 70 tcf of gross CSM resources on its permits in Queensland through a LNG project at Gladstone on the central east Queensland coast.

Arrow is anxious to accelerate its push into LNG export, which would create hundreds of jobs and position Arrow as a dominant player in the global CSM market.

Shell's participation will provide world-class expertise in LNG technology, plant design, construction, and marketing.