Merger to create gas to liquid energy plant.

Australia's first plant converting coal seam gas to diesel and other liquids could be built at Gladstone in central Queensland, when two energy companies merge.
Arrow Energy is merging with CH4 Gas to create Australia's largest company specialising in coal seam gas.
Arrow Energy chief executive Nick Davies says the combined entity will have assets across Queensland, including the Moranbah Gas project as well as discoveries in the Styx Basin and the Boyne River Valley, south of Gladstone.
"This would actually be the first in Australia - there are a number around the world that are doing it but in the past, because oil prices have been relatively low, there hasn't been a huge incentive to do them," he said.
"In Australia, where gas prices are very low and liquid prices are very high, there is an incentive to go and do these types of projects."
Mr Davies says he expects the merger to be complete by the end of August.
Arrow has also invested in another company called Pure Energy.
"That has a large collection of assets in between the CH4 assets and Gladstone, so between the three companies we have a very wide coverage of assets in that entire region which will give us the ability to transport gas into a number of areas up there," he said.
Print Email