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.

Arrow stated that the sanction from the Foreign Investment Review Board means the corporation can at present appeal regulatory sanction from Chinese authorities.

The Australian competition supervisory body gave its consent previously this month to the Australian dollars 3.44 billion takeover.

Under the arrangement, Arrow will offshoot its resources outside Australia including interests in China, India, Vietnam and Indonesia, into a new corporation, Dart Energy Ltd., in which present Arrow shareholders will acquire a stake.

Arrow, which delivers coal seam gas to eastern parts of Australia and Asia, stated that it will hold a vote on the contract when shareholders are going to meet in mid-July.

Arrow asserts that it has the biggest coal seam gas treasury in Queensland State.