The news led to shares in Arrow jumping 47% on the Australian stock market. In a statement Arrow said that “recommends shareholders take no action in relation to their Arrow shares” at this stage. Arrow claims to have the largest reserves of natural gas in Australia’s northern eastern state of Queensland.
Analysts said Shell and PetroChina want to buy Arrow to increase their LNG supplies to China. LNG is gas that has been converted into liquid form through cooling, which makes it easier and cheaper to transport by sea.