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A Shell sign is seen at a gas station in Melbourne on March 8, 2010. REUTERS / Mick Tsikas
MELBOURNE / SINGAPORE (Reuters) – Royal Dutch Shell and PetroChina are questioning gas prices at their Arrow Energy joint venture, blocking the development of Australia's largest coal gas deposit, said three sources of the sector.
Shell and PetroChina acquired Surat's gas resources as part of Arrow's $ 3.5 billion takeover of Arrow (2010), and had expected a final investment decision in October. 2018, with first production around 2020.
That was after the signing by the Arrow Energy joint venture in December 2017 of a contract for the supply of natural gas from Surat to the Queensland plant Curtis LNG (QCLNG), operated by Shell.
However, PetroChina is not satisfied with the price of the QCLNG sales agreement and the technical gas development plan, issues that are currently subject to final approvals, according to three industry sources familiar with the discussions. who refused to be named because of the sensitivity of the material.
"PetroChina, as a 50% stakeholder of Arrow, hopes to maximize the interests of the joint venture in relation to QCLNG. But for Shell, she could think of using her role as an operator at QCLNG to protect her interests, "said a Chinese oil industry executive.
"We are working hard to manage approvals with joint venture partners," said a spokeswoman for Shell.
PetroChina has not responded to a request for comment.
Report from Sonali Paul to MELBOURNE and Aizhu Chen in SINGAPORE; Edited by Tom Hogue
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