welcome to this new age of Australian politics where horse trading is about to become popular again.
Street Talk in the AFR has an ariticle on page 28 today saying the Arrow settlement clears way for Santos pact.
Royal Dutch Shell and PetroChina take control of Arrow Energy today and the formal settlement will clear the way for Shell to pursue its negotiations with Adealide-based Santo with renewed vigour.
Shell is understood to have been reluctant to push the Santos discussions too strongly until the Arrow transaction was officially settled.
The AFR revealed last month that Shell and Santos were in talks to combine their QLD coal-seam gas projects into a single lng development that would strengthen the projects of both companies.
As it stands Santos is short of customers -AND GAS - to support a second lng train, or processing line.
Shell and Petronchina can help Santos on the customer front, while its gas reserves will allow the pair to eye a much bigger lng future in qld.
Combining its projects with Santos will also give Shell a better LNG site that is much further progressed that its current asset base.
Santos hs been deep in talks with other potential lng buyers and santos chief david knox is likely to be grilled on the progress of those talks when the company releases its half year results on Thursday.
ESG Price at posting:
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