Axe swings at Arrow Energy as 250 jobs go Royal Dutch Shell and PetroChina are to cut 250 jobs at Arrow Energy as they attempt to improve the economics at the coal seam gas project. ABOUT 250 jobs are believed to have been cut from Royal Dutch Shell's Arrow Energy coal seam gas project today. The cuts, which will be made to a workforce that had previously stood at 1200, come in response to ongoing concerns about the economics of the project's proposed $20 billion liquefied natural gas plant. The job losses are understood to include several senior managers. There had been suggestions early on Monday that up to 600 people - or half the project's workforce - would be fired as part of the restructuring, but The Australian understands the total job losses will reach 250. Shell and its 50 per cent partner in the project, Chinese oil and gas giant PetroChina, have battled to make the Arrow project stack up economically at a time of significant cost inflation in the LNG industry generally. A spokesman for Arrow confirmed the company had "conducted a review of staffing levels as it manages costs." "While the company acknowledges this will be a difficult time for employees, it is committed to supporting them through this transition," the spokesman said. The company remains focused on finding additional value and reducing overall costs. Arrow will continue to assess development options, including collaboration opportunities, as it looks to develop significant gas reserves. The cost pressures have been particularly acute in and around Gladstone in central Queensland, where the Arrow LNG plant was proposed. Three other LNG projects are already under construction there, putting pressure on wages, services and infrastructure. While Shell and PetroChina are believed to still be interested in developing the project, both companies want to see the economics of any development improved substantially before it is given a go-ahead for construction.