<article><p class="lead">Shell and state-controlled PetroChina's Australian natural gas upstream venture Arrow Energy has taken a A$1.17bn ($902mn) impairment charge, reflecting the impact of the Covid-19 pandemic on oil and gas prices and gas and electricity demand. </p><p>Arrow, which produces coal-bed methane for domestic users and is developing a gas project that will provide feedstock for Shell's 8.5mn t/yr Queensland Curtis LNG (QCLNG) project in Queensland, took the charge in its 2020 results. It comes after Shell reported a <a href="https://direct.argusmedia.com/newsandanalysis/article/2118863">$22bn impairment charge</a> in June 2020 including $8bn-9bn of impairments in its integrated gas division, mainly related to Australian LNG assets. </p><p>Arrow said its 2020 results reflect the continuing operation of its gas supply and electricity-generating businesses, the beginning of project execution on the first phase of the <a href="https://direct.argusmedia.com/newsandanalysis/article/2097166">Surat gas project</a> and other work in the Surat and Bowen basins in Queensland.</p><p class="bylines">By Kevin Morrison</p></article>
