Origin Energy Limited
(ASX:ORG) and Santos Limited
(ASX:STO) have confirmed they are in talks with Arrow LNG over a potential consolidation of Queensland LNG ventures, according to media reports.
The reports come as speculation grows that Arrow owners Shell and PetroChina may scrap plans for a $20 billion standalone LNG plant.
The chief executives of Santos and Origin both confirmed their involvement in discussions with Arrow, according to the media reports.
Origin Managing Director Grant King told media he thought Arrow was in talks with a number of parties about the proposal.
Shell has previously said it hoped to develop Arrow gas more economically, flagging high costs associated with the project.
Origin generated a net profit of $561 million for the first half of the current financial year.
