Royal Dutch Shell's move on Arrow Energy is an important step forward in the company's development of Australia's coal bed methane. Equally important is its choice of partner: PetroChina, China's largest oil and gas group.
Shell is a world leader in liquefied natural gas, super-cooled so that it can be transported by tanker, but it has lagged behind its rivals, including BG Group, in plans to use unconventional gas to produce LNG.
Unconventional gas lies in reservoirs that can include coal and shale, where more advanced technology is needed to make it commercially viable.
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