Australia's Liquefied Natural Gas Ltd is looking at possible alternative partners for the development of its Gladstone LNG project after existing partner Arrow Energy became a takeover target, the firm said.
Under a rengotiated agreement with Arrow, LNG will be able to freely explore all gas supply opportunities and project structure options with other parties, LNG said.
LNG shares ended the day up 1.5 cents, or 2.9 per cent, at 52.5 cents, after earlier rising as much as 9 cents, or 18 per cent. The shares were placed in a trading halt yesterday, pending today's announcement.
LNG said the terms of the sale of its Fisherman's Landing project in Queensland to Arrow Energy has been changed to allow either party to terminate the agreement with one day's notice.
The status of the sale has been under a cloud since earlier in March, when Royal Dutch Shell and PetroChina made a non-binding, indicative takeover bid for Arrow worth at least $3.3 billion.
Separately, Arrow Energy said it remains in talks with Royal Dutch Shell and PetroChina on the duo's joint takeover offer.
"Arrow continues active discussions with Shell and PetroChina over their proposal, it said in a statement.
Last week, two energy giants made a non-binding and conditional offer for Arrow which would give shareholders $4.45 in cash per share, plus a share in a new entity comprising Arrow's international business.
Arrow shares ended the day down 2 cents, or 0.4 per cent, to $5.23.
Reuters, AAP
