While Arrow (owned 50:50 by Royal Dutch Shell and PetroChina) received several key approvals for possible CSG-to-LNG development last year, a spokesman previously said the company was seeking the best way to monetise its gas.

This could involve selling these resources to one of the other Curtis Island-based LNG projects instead of building another LNG plant there.

Gladstone LNG project partner Total also revealed in December that it was "no secret" that this joint venture was negotiating with Arrow.

According to the Courier Mail, AME said it did not expect the Arrow LNG project to progress in the short term.

"In 2014, there was some movement on the project with Shell pursuing a 580km pipeline to bring CSG from Moranbah to Gladstone, insisting the project was still on the cards," AME reportedly said.

In December Arrow awarded WorleyParsons the front-end engineering and design contract for its lengthy Bowen Basin pipeline project.

Arrow stalled its Curtis Island LNG plans in early 2014 with jobs cuts reported by various press at the time.