PetroChina mulling sale of its stake in Arrow CSG
PetroChina is reportedly considering selling its half of Arrow Energy’s Queensland coal seam gas (CSG) resources.
The company blames high costs and overbearing environmental compliance regulations for the termination of Arrow’s proposed CSG-LNG development on Curtis Island near Gladstone in Queensland.
Last year Arrow did receive several environmental approvals for possible CSG-LNG development and has since been looking at potential for collaboration with other Curtis Island-based LNG projects. There is no secret in that the Santos Ltd.-led Gladstone LNG project has been negotiating with Arrow.
However, Jiang, Manyu, PetroChina’s international investment general manager for Australia, is reported as saying the company is considering its options, including an outright sale of its Arrow gas, a deal where Arrow gas is processed by another joint venture, or any other arrangement that offered value.
PetroChina does not need additional LNG supply from Arrow. The company is said to be unhappy at the slow progress of the Arrow project compared with its other overseas ventures.