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Arrow Energy hits the target with QCLNG gas deal
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Arrow Energy has signed a gas sales agreement with the Shell-operated QCLNG project. Arrow will supply 5 tcf from its Surat Basin CSG acreage over a 27-year period. The gas will be processed by QCLNG, therefore limiting Arrow's capital expenditure. The gas will be marketed as part of QCLNG's portfolio and will give the project increased flexibility. This agreement could have a large impact on the expected domestic market demand/supply gap in eastern Australia, but is unlikely to impact prices. For both Shell and PetroChina it finally unlocks the value in Arrow Energy, which they purchased in 2010.
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