I believe WDS has great chance to be awarded this pipeline...

I believe WDS has great chance to be awarded this pipeline project based on its previous good cooperation with Arrow Energy.

In addition, WDS still has opportunity to be awarded the drilling & pipeline projects from Santos.(In May, Santos awarded Fluor Australia Pty Ltd of the upstream facilities component of the GLNG project, but the downstream facilities including drilling & pipeline (500M) are not decided yet)

Once the FID done, Santos maybe award the pipeline project to WDS before the end of this year.

July 2010

Arrow Energy and AGL Energy are looking at building a new 420 km CSG pipeline from Moranbah to Gladstone, following the success of the North Queensland Gas Pipeline, which runs from Moranbah to Townsville. The X70 pipeline will connect the national pipeline grid at Gladstone.

The Queensland Government has issued an initial advice statement regarding the proposed pipeline and significant project status has been granted. Details regarding the capacity of the pipeline, sources of gas and potential gas buyers are yet to be determined. The pipeline will have metering stations at Gladstone City Gate and Fishermans Landing.

Arrow has said that a takeover offer from a joint venture between Shell and PetroChina must be resolved before a final decision on the project is made. In March 2010, Arrow recommended its shareholders accept the takeover offer.