400 jobs are set to go at Arrow Energy after the coal seam gas producer lost the financial backing of a major partner for its $15 billion Gladstone LNG project.
The Australian reports that key shareholder, Shell, is keen to shed the project after downgrading the company’s profit forecast.
An Arrow spokesperson told the Courier Mail that they expected around 400 jobs would have to be shed from a current workforce of 1200.
“While the company acknowledges this will be a difficult time for employees, it is committed to supporting them through this transition,” the spokesman said.
“The company remains focused on finding additional value and reducing overall costs.”
Late last year Arrow was announced as the fourth CSG player to set up shop at Gladstone’s massive LNG precinct on Curtis Island, after the Queensland government approved Arrow’s plans to construct a $15billion LNG plant on site.
The Courier Mail reports that Shell now plans to focus on its five other major LNG projects in Australia, the long running North West Shelf project being its number one concern.
“We obviously cannot comment in the media about our intentions,” a Shell insider said today.