Arrow Energy will sign an agreement with Liquefied Natural Gas Limited to acquire the entire $3 billion Fisherman's Landing Liquefied Natural Gas plant and associated infrastructure through the attainment of subsidiary Gladstone LNG. It will pay $51 million for LNG Limited's additional Gladstone LNG.

Arrow Energy had achieved 1.18 per cent shares, to $3.44 at 1222 AEDT, while LNG Ltd shares had jumped 6.5 cents, or 9.35 per cent, at 76 cents. As the plant will reach a production rate of one million tons per annum, Liquefied Natural Gas Limited will receive $24 million and $24 million, a $US5 million licensing fee for the use of its technology will be paid to it, once a final investment decision is made. A meeting is expected to be held within the next 45 days for an approval of shareholders for the smooth transaction.

"Arrow is excited to be taking full control of the construction and future operation of the world's first CSG to LNG facility. This further simplification of the Fisherman's Landing LNG development and the elimination of the commercial agreements with LNG Limited, will improve the ability to construct, finance and ultimately allow for greater flexibility in the operation of the plant", said Nick Davies Arrow Energy Chief Executive Officer.

The upfront purchase price for the getting hold of it is $51 million.