Arrow LNG next to go

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From the AFR:

Arrow LNG has been holding negotiations on potential consolidation with rival LNG ventures in Queensland, raising expectations that owners Shell and PetroChina are moving towards scrapping plans for a $20 billion-plus stand-alone plant to instead join Santos or Origin Energy projects.

Origin chief executive Grant King and Santos boss David Knox on Wednesday both referred to talks with Arrow and held up the possibility of an amalgamation between their respective ventures and the Arrow project.

…Chief financial officer Simon Henry is expected to comment on progress at Arrow at Shell’s first-quarter results in London on Thursday.

This is a no-brainer. Building another LNG plant at Curtis Island probably isn’t even possible. Who would finance it? Plus it provides at least some risk mitigation to the existing projects that the community shift against CSG won’t leave them short of gas.

Another one bites the dust I reckon.

Comments

  1. I reckon – and from the point of veiw of a Gladstone local, I’m not exactly devastated.

    It seems ironic that such a huge sum of money invested into a project could have so very, very little benefit for the community that has played host to it. On balance, I think it has probably done more harm than good – all we’ve really gotten out of it is inflated costs of living.

    Maybe housing will become more affordable here, who knows. Housing estates have sprung up like mushrooms around here, with little evidence of any planning restrictions holding them back. A former boss of my has been trying to sell his house for the past six months so he can move down south – but the place just isn’t selling.

    Yet so far, prices don’t seem to be falling by any significant amount, so far as I am aware at least. Perhaps the low-interest rate regime is something of a gift to the specuvestors from other parts of the country who have bought up so much Gladstone housing, enabling them to hold onto their property here without being forced to sell. They’ll need something at least – you can’t claim negative gearing on empty houses that can’t be rented out in a busted-arse resource town.

    • notsofastMEMBER

      3 large LNG projects is more than enough at Gladstone. At the end of these currently approved projects Gladstone will be producing almost as much LNG per year as the LNG precinct on the Murujuga or better known as the Burrup Peninsular.

      By the end of 2016 Gladstone will be the equal biggest, give or take an mtpa, single LNG precinct in Australia. That is quite an achievement.