Shell's Arrow Energy Bids For Bow Energy

Printer Friendly Version

In a bid to boost its liquefied natural gas exposure in Australia, Arrow Energy, the Australian coal-seam gas producer owned by Royal Dutch Shell and PetroChina, has offered to acquire Bow Energy for $540 million, a bid that some analysts say undervalues the company.

Shell (RDS-A), Europe's largest oil company, and PetroChina (PTR), China's largest oil company, jointly acquired Arrow Energy last year in an effort tap into soaring LNG demand from Asian customers.

Bow increased its proven and probable reserves to 238 petajoules last month and aims to reach 1,250 petajoules in 2012, enough gas to support an LNG plant producing 1 million metric tons of the fuel annually over 20 years, Bloomberg News reported, citing the company.

Acquiring Bow would help Arrow increase capacity at two of its LNG processing facilities in Australia. The company is planning a fourth LNG venture in Australia's Queensland state to meet rising demand, according to Bloomberg.

Archives:200920102011201220132014