Shell, PetroChina take $900mn hit on Australia gas

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.

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 $22bn impairment charge in June 2020 including $8bn-9bn of impairments in its integrated gas division, mainly related to Australian LNG assets.

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 Surat gas project and other work in the Surat and Bowen basins in Queensland.

By Kevin Morrison