Australian foreign investment regulator has given its approval to Royal Dutch Shell and PetroChina’s combined $3.2 billion bid in order to takeover arrow Energy Ltd.

Australia has been trying to ramp up major natural gas projects, as demand for less contaminating petroleum than coal has highly surged from other nations, mainly from China.

Royal Dutch Shell and PetroChina have entered into an agreement to buy Arrow Energy Ltd. for 3.5 billion Australian dollars following an instigation made by Arrow's Chief Executive Nicholas Davies to raise the purchase amount by 6%.

Chinese firms Royal Dutch Shell and PetroChina jointly bid more than $3 billion for Australia's Arrow Energy, which makes it the first ever Chinese firm to venture in the country's growing coal-seam gas sector.