November 17, 2010 / 10:03 PM / 10 years ago

Toxins confirmed in Australia coal-seam gas wells

SYDNEY, Nov 18 (Reuters) - An Australian coal-seam gas company owned by Royal Dutch Shell (RDSa.L) and PetroChina Co Ltd (601857.SS) (0857.HK) has confirmed the presence of toxins in three wells in an Australian project.

Arrow Energy said in a statement released to the Australian stock exchange on Thursday that trace amounts of so-called BTEX group chemicals, which include benzene, had been found in the wells in Bowen Basin coal fields of northern Queensland state.

Arrow Energy is leading the development of a project that aims to turn coal-seam gas into liquefied natural gas for export, at an estimated cost of $10 billion for the first phase.

Reporting by Mark Bendeich; Editing by Balazs Koranyi

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