Royal Dutch Shell Group .com Rotating Header Image

Posts under ‘Gas-to-liquids’

Losses on Corrib near €2bn as Shell sells up

Losses on Corrib near €2bn as Shell sells up

It had been beset by more than a decade of delays and rows with protesters before production began.

Gavin McLoughlin: 

The Corrib gas field has left Shell and its partners in the project with losses running to the best part of €2bn to date.

Shell announced yesterday it was exiting the project in a deal worth potentially as much as €1.08bn, selling its 45pc stake in the project to a Canadian pension fund, Canada Pension Plan Investment Board (CPPIB).

The deal – which is expected to complete next year – will see Shell take an impairment charge of around $350m (€307m) and write off $400m (€350m) in historical currency movements that have impacted on its valuation of the asset. read more

Prelude FLNG project relegated to the backburner

FLNG projects – mega tankers fitted with gas extraction and liquefaction facilities – allow producers to tap offshore gas wells and ship LNG without having to build costly pipelines to onshore plants. Owners can move the vessels to new fields when production at an old one ends, slashing asset end-of-life costs.

By Mark Tay: Reuters 6 March 2017

SINGAPORE: Once considered the future of gas production, floating liquefied natural gas (FLNG) projects have been firmly relegated to the backburner as global gas producers seek cheaper ways to compete with a surge in U.S. shale supplies and slumping prices. read more

Shell Prelude LNG over-promise and under-delivery

Extracts from a Reuters/Nasdaq article Australia’s Ichthys LNG dealt blow as major contractor pulls plug”  dated 25 Jan 2017.

Australia’s$200 billion LNG production ramp-up is one of the biggest increases in supply the industry has ever seen, and it will lift Australia over Qatar as the world’s biggest exporter of the fuel.

Even so, most of Australia’s LNG projects currently under construction, including Chevron’s huge Gorgon facility and Royal Dutch Shell’s floating Prelude production vessel, are having trouble keeping within budget and sticking to schedules, and more delays are expected. read more

Joint-venture partners in Browse open to new options

Screen Shot 2016-08-29 at 18.22.59

BRIDGET CARTER, GRETCHEN FRIEMANN:

  • The Australian
  • 12:00AM August 30, 2016

The one thing that the Woodside Petroleum-led Browse project has never had much of is unity among the project partners. But that may quietly be changing.

DataRoom understands that the various joint-venture partners in Browse are open to new development options for the project, and that the pipeline option floated by Woodside last week is increasingly being seen by all the partners as the most sensible plan as it stands today.

Woodside chief Peter Coleman told journalists on Friday that the option of connecting Browse to the big but ageing North West Shelf liquefied natural gas plant via a massive 1000km subsea pipeline was back on the table. read more

The Panama Shortcut

Screen Shot 2016-08-15 at 17.58.15

Jon Asmundsson: August 15, 2016

When the sun rose over the Caribbean Sea on July 25, the Maran Gas Apollonia was churning toward the new Panama Canal with a shipment of U.S. liquefied natural gas that it had loaded at Cheniere Energy’s Sabine Pass terminal in Louisiana. Tugs guided the 90,434-ton tanker into the first of the Panama Canal’s new Agua Clara Locks. The gates closed, and water filled the first chamber. That night the vessel passed through Gatun Lake and the new Cocoli Locks and entered the Pacific Ocean, becoming the first LNG tanker to transit the expanded shipping lane that opened in June. Built in 2014, the Royal Dutch Shell-chartered tanker is about 13 meters (43 feet) wider than the largest ships the old locks could handle. The expansion opens the Panama Canal to about 90 percent of the world’s LNG fleet, up from less than 10 percent, allowing these football-field-size tankers to shave 11 days and one-third the cost of the typical round trip to Asia. In July the U.S. Department of Energy predicted 550 tankers could be crossing each year by 2021. read more

Royal Dutch Shell stake in Woodside Petroleum ‘held for sale’

Screen Shot 2016-07-29 at 08.40.19

by Angela Macdonald-Smith: July 29 2016

Royal Dutch Shell looks to be heading for an exit from Woodside Petroleum sooner rather than later, after reclassifying its remaining $3 billion stake in the Australian oil and gas producer as an “asset for sale”.

The move appears to be driven by technical reasons because of Shell’s reduced representation on Woodside’s board. But at the same time it may signal a firmer intention to dispose of the circa 13 per cent stake, which Shell has for some time declared as a non-strategic holding. read more

Shell Gas Director Says World Isn’t Oversupplied With LNG Yet

Screen Shot 2016-06-07 at 10.26.02

Screen Shot 2016-06-11 at 10.00.51

By Lynn Doan: June 10, 2016 – 10.52 PM BST

Screen Shot 2016-06-06 at 10.26.15For months, banks including Citigroup Inc. have talked about a massive oversupply in the global market for liquefied natural gas. The head of natural gas at Royal Dutch Shell Plc, one of the world’s biggest producers of the fuel, would beg to differ.

“There isn’t really yet the kind of oversupply that people talk about,” Maarten Wetselaar, Shell’s integrated gas and new energies director, said on Friday in an interview in Palo Alto, California. For proof, he said, look at Europe, where natural gas demand gained last year and LNG imports from overseas were little changed. read more

Shell sees slower roll-out of floating LNG

Screen Shot 2016-05-05 at 08.24.55

Screen Shot 2016-05-05 at 08.27.24

Screen Shot 2016-05-05 at 08.32.26

Mr Henry said Prelude “remains on track to deliver some material cash flow in 2018,” signalling the venture still has some way until start-up.

Angela Macdonald-Smith: Energy Reporter:May 5, 2016

Royal Dutch Shell acknowledges the roll-out of its floating LNG technology will occur much more slowly than anticipated a few years ago, leaving its ground-breaking Prelude venture in WA as potentially its sole FLNG venture for several years.

Shell had targeted a conveyor belt of huge FLNG vessels running of the production line in South Korea, being deployed at remote gas fields worldwide, with several in waters around Asia.

But three projects that could have used five new FLNG vessels have been halted in their tracks, leaving the $US12 billion Prelude venture Shell’s only one for the forseeable future. FLNG ventures planned by other companies in Australia have also fallen foul to cost and price issues. read more

GE starts production on Shell’s Prelude risers, must withstand a 1-in-10,000-year cyclonic event

Screen Shot 2016-04-11 at 09.44.59

Screen Shot 2016-02-17 at 08.47.47Written by Rita Brown – 11/04/2016 7:38 am

GE Oil & Gas today confirmed it had started production on four high pressure, high temperature dynamic flexible risers destined for Shell’s Prelude, the world’s largest offshore floating facility.

The firm is building them to survive a 1-in-10,000-year cyclonic event, according to the contract spec.

GE will complete the work at its facility in Newcastle, UK, where it has invested more than $21million to expand its production carousel capacity to accommodate the giant kit. They must also be able to withstand high pressures, high operating temperatures, the potential for cold shut-downs and rapid depressurisation. read more

Pickard quits Shell

Screen Shot 2015-11-11 at 09.46.55

Screen Shot 2015-11-11 at 09.47.48

Screen Shot 2015-11-11 at 09.51.25Peter Klinger: November 11, 2015

Ann Pickard, once dubbed the “bravest woman in oil and gas” before she transformed Royal Dutch Shell’s century old presence in Australia, has quit the Anglo-Dutch giant.

However, the decision to retire from Shell will not spell the end of her exposure to oil and gas, and LNG in particular which she championed during her stint as the Anglo Dutch giant’s Australia country chair.

Ms Pickard is joining the board of oil and gas engineering contractor KBR as a non-executive director from next month. read more

Screen Shot 2015-09-03 at 07.48.11

Screen Shot 2015-11-04 at 07.47.53

Screen Shot 2015-11-04 at 07.53.22

Screen Shot 2015-11-04 at 07.57.03Angela Macdonald-Smith: November 4, 2015

Royal Dutch Shell remains unequivocally bullish on prospects for liquefied natural gas despite the current market glut, pointing to several options for new supply projects after its planned $US70 billion ($97 billion) takeover of BG Group and plenty of new markets opening up around the world.

“The fundamentals of this market look as robust now as in the past to us,” chief financial officer Simon Henry told investors overnight Australian time, spelling out Shell’s expectation that global LNG demand will expand at 5 per cent a year to 2030, only modestly lower than the 8 per cent annual growth seen since 2000. read more

SBM Offshore wins Browse FLNG FEED

Screen Shot 2015-10-19 at 14.39.03

Screen Shot 2015-10-19 at 14.41.34

Screen Shot 2015-10-19 at 14.47.07

by  AOG Staff: Monday, 19 October 2015

SBM Offshore has been awarded the front-end engineering and design (FEED) contract for three large scale turret mooring systems associated with the proposed Browse floating liquefied natural gas (FLNG) development in Australia.

The turrets are expected to be designed similar to and slightly larger in size than the Shell Prelude FLNG turret that SBM Offshore was awarded in 2011, and whose last module was recently successfully delivered from the construction yard in Dubai. Integration with the Prelude facility in Korea is currently ongoing. read more

Shell toughens local project hurdles

Screen Shot 2015-08-01 at 09.28.39

Screen Shot 2015-08-01 at 09.36.00

Screen Shot 2015-07-31 at 19.22.09Matt ChambersResources Reporter: Melbourne: 31 July 2015

Oil major Shell has laid down tougher hurdles for its Australian projects including Browse LNG off Western Australia and Arrow coal-seam gas in Queensland.

It has cut the oil price at which new projects need to go ahead and flagged a major LNG project ­pipeline overhaul if its planned $91 billion takeover of BG Group is successful.

Shell chief executive Ben van Beurden said the company would require projects to be profitable near $US50 a barrel of oil, down from previous indications of ­between $US70 and $US90. read more

Shareholders should demand that Shell’s activities in the Arctic be stopped

Screen Shot 2015-07-31 at 12.56.41

Screen Shot 2015-07-31 at 12.52.57By a Regular Contributor

Hopefully, Shell will soon accept that in the US Arctic their position is now untenable…

If RDS wants to cut capex (and exposure), FLNG is a good place to start, as Simon Henry suggested yesterday. The Arctic should be next. 

The Arctic is rapidly acquiring a similar profile to the Brent Spar fiasco. The issue is not whether Greenpeace is right or wrong, it is whether Shell can win the hearts and minds of the public to support their efforts. So far, Shell’s own incompetence has been the most significant issue in eliminating any public support they once enjoyed. 

The destruction of drilling vessels and criminal convictions for polluting the environment and failing to keep the required records support the view that Shell do not know what they are doing. Neither Shell’s army of lawyers nor the judges on whom they rely have ever worked offshore and have no idea of what it entails. However, the first time that there is any illegal discharge into the sea or the air (and it will happen), or a fatality, injury or  well control incident, the lawyers who are supporting Shell’s current efforts will have nothing constructive to say.  read more

Royal Dutch Shell signals Browse FLNG go-ahead far from certain for 2016

Screen Shot 2015-07-30 at 13.47.10

Screen Shot 2015-07-30 at 13.48.47

Screen Shot 2015-07-30 at 13.55.01

By Angela Macdonald-SmithJul 30 2015

Royal Dutch Shell has signalled that a final go-ahead next year for the Browse floating liquefied natural gas project in Western Australia is far from a certainty given the cost challenges of the venture in the depressed oil price environment.

Chief financial officer Simon Henry listed Browse among several large international projects that would be subject to “the dynamic nature of decision making as we take both the oil price environment but also the supply chain and the cost level into account.” read more

World’s Largest Turret Mooring Ready for Prelude

Screen Shot 2015-07-06 at 07.46.28

By Wendy Laursen 2015-07-05 

Drydocks World has marked a major milestone by completing the world’s largest turret mooring system.

At almost 100 meters high, weighing over 11,000 tons and with a diameter of 26 meters, the turret will ensure Shell’s Prelude floating liquefied natural gas (FLNG) facility can operate safely in the most extreme weather conditions. 

The FLNG will be stationed in the Prelude gas field off the northwest coast of Australia. It will be Shell’s first FLNG deployment. The technology allows for the production, liquefaction, storage and transfer of LNG at sea, as well as the ability to process and export liquefied petroleum gas (LPG) and condensate. read more

Shell awards contracts for its $40bn Browse project

Screen Shot 2015-07-03 at 07.55.29

Screen Shot 2015-07-03 at 08.02.31

Screen Shot 2015-07-03 at 07.59.45

Written by Rita Brown – 03/07/2015

Shell has awarded the Technip Samsung Consortium two contracts for its $40billion natural gas project in Australia.

Shell’s Browse project covers the installation of three FLNG units to develop the Brecknock, Calliance and Torosa fields in the Browse Basin.

Shell, which has a 27% interest in the scheme, will use its floating liquefied natural gas (FLNG) technology to leveraging the site’s 15.4 trillion-cubic-feet of gas.

The Technip Samsung Consortium will manage the front-end engineering design (FEED) elements of the Browse FLNG project, taking into account the composition of the gas, local weather conditions and factors specific to each of the three fields. read more

Shell-led Canadian LNG deal gets environmental approvals

Screen Shot 2015-05-23 at 08.00.10

Screen Shot 2015-06-11 at 19.31.15Shell-led Canadian LNG deal gets environmental approvals

Thursday Jun 18, 2015

By Julie Gordon

(Reuters) – Canada’s environment ministry said on Wednesday it approved a Royal Dutch Shell Plc-led liquefied natural gas export terminal on British Columbia’s coast, contingent on the project meeting 50 environmental, social and operational conditions.

In her decision, federal Environment Minister Leona Aglukkaq concluded that the effects of the proposed LNG Canada project “are justified in the circumstances.”

She said the project would create thousands of jobs and contribute billions of dollars to the economy. read more

Shell sees only 15%-20% of Canada LNG projects advancing

Screen Shot 2015-01-12 at 08.45.23Article by Carl Surran published 25March 2015 by SeekingAlpha.com

Shell sees only 15%-20% of Canada LNG projects advancing

A top executive at Royal Dutch Shell (RDS.A, RDS.B) says he expects only 15%-20% of liquefied natural gas export projects already approved by the Canadian government to go ahead in the next decade.

Markus Hector, Shell’s general manager of global LNG, says the low forecast success rate is partly due to the scale of the infrastructure projects and the competition for people with the skills to build them.

Shell itself is the lead partner in a consortium planning the LNG Canada facility on British Columbia’s northern coast and is not expected to make a final investment decision until at least 2016. read more

Key role of Shell lawyers in pioneering Shell Prelude FLNG

Screen Shot 2014-11-26 at 19.03.18

By John Donovan

PRELUDE DESIGNED BY SHELL LAWYERS? MORE IMPORTANT ROLE THAN ENGINEERS? 

What will Bill Campbell make of the boasts from Shell’s chief lawyer Donny Ching, about the pivotal role of Shell in-house lawyers in the world’s first floating liquefied natural gas (LNG) facility, Prelude FLNG?

Extracts from an article about Donny Ching published by The Law Society Gazette on 5 December 2014:

Ching also believes that external law firms would have been no substitute for in-house lawyers in the work they did to build the world’s first floating liquefied natural gas (LNG) facility, Prelude FLNG. read more

Royal Dutch Shell News Thursday 11 Sept 2014

Screen Shot 2014-09-11 at 00.56.29By John Donovan

The US and EU are ready to impose new sanctions on Russia arising from events in Ukraine. See extract from a fuelfix.com article published under the headline: “Sanctions threaten Putin’s oil deals with Exxon Mobil, Shell”

Other vulnerable international operators include Royal Dutch Shell, the world’s second-largest energy company by market value. Multiple investments by The Hague-based company in Russia include ventures to use advanced reservoir-management techniques to revive and increase crude output from Soviet-era fields and to explore some of the nation’s vast, untapped shale formations. “We are continuing to review the latest sanctions to assess the potential impacts on our business, and engaging with the respective authorities to gain further clarity,” Kayla Macke, a Shell spokeswoman, said in an e-mail. “We are taking action to ensure we comply with all applicable sanctions or related measures. We’re keeping the situation under close review.” read more

Roundup of Royal Dutch Shell News 16 August 2014

Screen Shot 2014-06-23 at 11.37.41SHELL’S USA FIRE SALE

The New York Times reports that the Blackstone Group, a private equity company, is paying Royal Dutch Shell $1.2 billion for a stake comprising more than 107,000 net acres in Louisiana. MORE

A related article by BusinessReport.com features a quote from Marvin Odum, president of Royal Dutch Shell’s U.S. division, Shell Oil Company. Marvin said in a statement: “We are adding highly attractive exploration acreage, where we have impressive well results in the Utica, and divesting our more mature, Pinedale and Haynesville dry gas positions.” MORE read more

Shell’s Pearl GTL: The Largest Gas-To-Liquids Plant In The World

Screen Shot 2014-02-10 at 16.29.29Extract from a Rigzone article published Wednesday 30 July 2014

In 2008, Shell announced it would partner with Qatar Petroleum and build Pearl GTL in order to produce cleaner-burning diesel and kerosene, base oils for top-tier lubricants, a chemical feedstock called naphtha (used to make plastics) and normal paraffin, which is used to produce detergents. Today, the plant in Ras Laffan Industrial City, 80km north of Doha, Qatar, is the largest gas-to-liquids plant in the world. 

FULL ARTICLE

LNG as a fuel carries with it many risks

Screen Shot 2014-06-27 at 09.23.10

Extracts from a MarineLink.com article by Joseph Keefe published 26 June 2014 under the headline: “Maritime Fuel of the Future: Training to an Uncertain Standard”

First extract

Despite its unquestionable allure, LNG as a fuel carries with it as many risks as it does answers to the problems it promises to solve.

Second extract

Separately, Royal Dutch Shell plc announced in December that the company would not move forward with a proposed 140,000 barrels per day Gulf Coast gas-to-liquids (GTL) project in Louisiana. Shell described the decision tersely by saying, “Despite the ample supplies of natural gas in the area, the company has taken the decision that GTL is not a viable option for Shell in North America, at this time, due to the likely development cost of such a project, uncertainties on long-term oil and gas prices and differentials, and Shell’s strict capital discipline.” read more

Bonaparte Surrender

By John Donovan

It seems that the alarming articles we have published about the Royal Dutch Shell Prelude FLNG project, highlighting risks based on insider information and expert opinion, may have had an unintended impact. 

According to a Dow Jones news report published today, GDF Suez SA and Santos Ltd have both withdrawn from their plans to develop their own floating liquefied natural gas project off the northern coast of Western Australia – the Bonaparte venture.

The Capital.gr article points out that budget overruns at a number of LNG developments in Australia “have underscored the risks for international energy companies weighing new projects.” read more

Only a fraction of big gas export projects will be built, Shell exec says

Screen Shot 2014-02-10 at 16.29.29Extracts from a Seeking Alpha article published 9 June 2014

Only a fraction of the big natural gas export projects being developed around the world will become reality, as high costs and low profit margins in the gas sector sink those that once had promised huge returns on investment, Royal Dutch Shell (RDS.A, RDS.B) director of projects and technology Matthias Bichsel tells Reuters. He knows from experience: Estimated development costs for the Gorgon LNG project in Australia (Shell owns 25%) have soared from $37B initially to nearly $55B thanks to high labor expenses and complex technology, Shell quit the Wheatstone LNG project in the country, and it also has abandoned a proposed gas-to-liquids project in Louisiana. read more

%d bloggers like this: