Rumours that gas will be sold rather than trains built

By Russell Searancke

 31 January 2013 23:59 GMT

Predictions are widespread in Australia that the Arrow liquefied natural gas project in Queensland will sell its gas to one of three under construction projects, rather than build its own LNG trains.

Shell, a partner in project operator Arrow Energy, has already warned that the project would not be hurried through, given Australia’s high-cost environment.

Chief executive Peter Voser has spoken of working “in a smarter way to keep costs further under control”, adding: “Australia is a key component for our growth, but we will not overdo it.”

There is now an opinion among industry analysts and pundits that Shell and fellow Arrow Energy partner Petro-China prefer to sell their gas to either Gladstone LNG, Queensland Curtis LNG or Australia Pacific LNG.

Gladstone is the analysts’…

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