Shell has officially cancelled its plans to develop Arrow LNG, a US$20bn gas liquefaction project in Queensland (Australia), due to the collapse in global oil prices. The project, developed by Shell and PetroChina on a 50-50 basis, had not moved ahead and the final investment decision for the first phase (two trains of 4 Mt/year each), which was expected in 2014, had been postponed to an undefined date. The LNG export terminal would have been later expanded with two 5 Mt/year liquefaction trains. Shell will continue to work on the development of the Arrow coal seam gas reserves in the Bowen and Surat basins. Gas could be sold to other LNG project, currently under construction or operating in Queensland, such as BG's Queensland Curtis LNG. Shell is already taking part to other LNG projects in Australia, including a 25% stake in the 15.6 Mt/year Gorgon LNG project in Western Australia expected in 2015-2016 and a 67.5% stake in 3.6 Mt/year Prelude LNG project in the Browse Basin expected in 2016-2017. The company plans to made a final investment decision on the 3.9 Mt/year Browse FLNG project (partnership with Woodside) in 2015-2016.
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