THE national competition watchdog has suspended its investigation into the Shell and PetroChina $535 million joint bid for coal-seam gas company Bow Energy as east-coast gas users complain about dwindling supplies in the face of Gladstone's burgeoning export industry. The Australian Competition & Consumer Commission said it had delayed a timetable for a November 24 decision on the takeover while it requested further information from the parties involved.
Both the Shell/PetroChina joint venture, known as Arrow Energy, and Bow painted the pause -- which follows a Foreign Investment Review Board delay this month -- as fairly normal ACCC behaviour.
But it comes amid growing fears about avenues available for domestic gas buyers in the face of surging demand from $50 billion worth of liquefied natural gas export investment planned at Gladstone. The Energy Users Association of Australia has made a submission asking the ACCC to knock the bid on the head on the basis that Bow was the most significant remaining CSG proponent not tied to an export project.
It is understood a group of big Queensland industrial gas users has also banded together to write a submission designed to block the takeover.
Bow has said the FIRB extension is because FIRB is waiting for an ACCC decision.
BOW Price at posting:
$1.50 Sentiment: Hold Disclosure: Held
