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Posts Tagged ‘LNG’

Shell to drill new wells by end-2018 to shore up Australia gas supply

Royal Dutch Shell said on Tuesday it will drill 161 new gas wells at its Queensland operations by the end of 2018, helping to underpin its promise to continue supplying 10 percent of the domestic gas market to help prevent a shortage.

The project at its QGC operations in the Surat Basin in southeast Queensland has been planned for some time as existing wells decline, with the new wells due to be drilled this year and next. The wells will help sustain Shell’s 75 petajoules of gas supplies a year to eastern Australia’s gas market.

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Shell cancels Prince Rupert LNG project, to move forward on Kitimat project

Mar. 13, 2017 1:36 PM ET|By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) says it is ending development of its proposed Prince Rupert liquefied natural gas project in British Columbia but is still considering the potential of its other Pacific coast LNG option.

Prince Rupert LNG was part of a portfolio of projects acquired in the takeover of BG Group last year, but Shell says the project no longer stacks up against existing options.

Shell said it continues to actively move forward on the proposed Kitimat LNG Canada project in B.C. with its partners, even though last year it indefinitely deferred a final investment decision on it because of market conditions.

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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.

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On board Shell’s Prelude barge, the world’s biggest vessel

PAUL GARVEY: Resources reporter, Perth: 4 March 2017

The biggest vessel the world has ever seen is in the final stages of preparation ahead of its maiden voyage to its permanent home off Australia’s northwest coast.

Royal Dutch Shell’s revolutionary Prelude floating liquefied natural gas facility — 50 per cent longer and six times the weight of the world’s largest aircraft carrier — is deep into the commissioning process at a shipyard in Korea, with the 120 Australians who will man the vessel already on board to familiarise themselves with the monster.

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Shell defies doubters by predicting boom for liquefied natural gas

The Telegraph: Shell defies doubters by predicting boom for liquefied natural gas

Jillian Ambrose20 FEBRUARY 2017 

Royal Dutch Shell has brushed off concern that the burgeoning market for liquefied natural gas is already oversupplied, after paying £36.5bn to buy market leader BG Group.

Shell’s first outlook report for LNG since the tie-up has predicted a market boom as demand from countries including China and India which will outpace the string of new project start-ups.

The market for LNG imports has already grown considerably in recent years but market commentators have raised fears that an explosion of new projects might flood the market. A deluge of LNG could push down prices just as Shell works to pay down the heavy cost of the tie-up.

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Shell says new LNG buyers want shorter, smaller contracts

Shell says new LNG buyers want shorter, smaller contracts

By Reuters20 February 2017

LONDON, Feb 20 (Reuters) – Royal Dutch Shell, the world’s biggest liquefied natural gas (LNG) trader following its takeover of BG Group last year, said new LNG customers that will drive demand are looking for shorter and smaller contracts.

Shell expects much of new LNG demand to come from countries that want to replace declining domestic gas production — which has already happened in Egypt and Pakistan — and those countries that are looking at LNG to complement pipeline and domestically produced gas, like China or Morocco.

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Shell names Yujnovich as chair, Smith to lead global trading

MATT CHAMBERS: Resources reporter Melbourne 4 Feb 2017

Shell Australia chairman Andrew Smith has been promoted to lead the oil major’s global trading business and will be replaced in April by the oil giant’s Canadian-based head of oil sands and former Rio Tinto executive Zoe Yujnovich.

Mr Smith, who has been at the helm of Shell Australia since 2013, has been promoted to lead Shell’s Singapore-based trading and supply business as executive vice- president.

During Mr Smith’s tenure, Shell has become the biggest producer of Australian LNG thanks to the Gorgon project in which it has a non-operating stake, and the acquisition of BG Group. Mr Smith played a key role in the deal.

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Shell plans Australian solar plants that can switch to gas

MATT CHAMBERS Resources reporter: Melbourne4 Feb 2017

Anglo-Dutch oil giant Shell is looking to invest in Australian solar plants that can switch to gas when needed to deliver baseload power supply as debate rages over renewable energy security in the wake of South Australia’s ­crippling power outages.

Shell, which is Australia’s biggest LNG exporter and one of the world’s largest oil companies, has revealed that Australia was one of three global locations, along with Oman and Brunei, where it was studying pairing renewable energy with gas, after last year flagging “new energies” would be a potential major source of growth for the fossil fuel company beyond 2020.

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Shell playing long game with Prelude FLNG

Shell playing long game with Prelude FLNG

2017-2018 startup date will coincide with LNG glut

By Sally Bogle
3 February 2017

Analysts say the Prelude FLNG facility will be used to boost Shell’s global LNG sales portfolio, rather than to target specific Asian customers, and that it will reap long-term gains for the company despite its 2017-2018 startup date coinciding with a glut of LNG supply.

One of Australia’s last remaining sanctioned greenfield LNG projects yet to be commissioned, Prelude will add to Shell’s stakes in other Australian projects – the North West Shelf, Gorgon, QCLNG and the planned Browse project – and become a strategic resource with which to exploit remote gas fields around the world.

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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.

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Shell to sell Australian aviation fuels unit to Viva Energy

Shell to sell Australian aviation fuels unit to Viva Energy

by Angela Macdonald-Smith: 19 December 2016

Royal Dutch Shell has struck a $US250 million ($343 million) deal to sell its local aviation fuels division to Viva Energy in a further slimming down of its downstream operations in Australia.

The sale follows the oil giant’s $2.9 billion divestment of its other refining and fuels activities to Viva in 2014 and comes amid heightened speculation that Shell is getting set to offload its remaining stake in Woodside Petroleum.

The deal, expected to formally close by md-2017, will see the Shell brand still used for the aviation refuelling business under a licensing deal similar to the arrangement Viva has to use the logo for its petrol retailing business. Regulatory approvals still need to be secured.

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Shell to offload Dragon gas port

Danny Fortson: December 18 2016: The Sunday Times

Shell has begun quietly sounding out potential buyers for its share of a giant gas- import complex in west Wales.

The FTSE 100 company owns half of Dragon LNG, a terminal at Milford Haven that reheats super-chilled liquid natural gas after it is delivered by tankers. The site has the capacity to provide 10% of Britain’s gas needs.

Petronas, Malaysia’s state oil producer, owns the other half and is likely to have first right of refusal. Dragon is yet another asset that has been put up for sale by Shell, which has pledged to raise $30bn (£24bn) through a global disposal programme to offset the cost of its takeover of rival BG.

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Shell awards JGC contract for completion of Prelude LNG vessel

Written by Mark Lammey – 09/12/2016 3:58 pm

Japanese engineering firm JGC Corporation has won a contracted to support the completion of Shell’s Prelude floating LNG facility.

JGC said the construction work on the giant vessel − which is 1,600 ft long, 240ft wide and weighs in at 600,000 tonnes − was in its final stages in South Korea.

Once commissioned, it will produce 3.6million tonnes of LNG per year from the Prelude and Concerto gas fields, in the Browse Basin, off Australia.

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Petronas beats Shell to have the first floating LNG?

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screen-shot-2016-11-21-at-08-53-06by  Rigzone Staff: Thursday, November 17, 2016

Petronas announced Thursday that its first floating liquefied natural gas (LNG) facility, PFLNG SATU, has achieved first gas from the Kanowit gas field, located offshore Sarawak.

The first gas milestone signified the commencement of commissioning and startup for the floating LNG facility, which will soon progress towards commercial operations and first cargo, Adnan Zainal Abidin, Petronas acting vice president of LNG assets, development and production said.

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LIVING IN TRUMPWORLD

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Comment from Bill Campbell on the Energy Voice Article: Shell stresses importance of stable regulatory environment post-Trump victory

Under Trump, with the senate and congress to support him, we can look forward soon to significant deregulation in the US effecting positively onshore fracking, tar sands development, offshore Deepwater in the Gulf and a boost perhaps to Alaska drilling. One assumes the Keystone pipeline will go ahead and perhaps pipelines running from central US to East Coast for new LNG Plants to supply a Europe hedging its bets over Russian gas availability with Europe’s ongoing problems with Putin, sanctions etc. A significant increase in US output, leading to increase in global supply over demand could dampen oil price. Shell seems to have divested assets recently in the US in some of these areas to offset BG takeover costs so uncertain whether Trumpworld will be good or bad for Shell.

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Ten years since Garda baton charge on peaceful protestors

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The 10th of November 2006 was chosen by the Shell to Sea campaign as a suitable day of action as it marked the anniversary of the hanging of Ken Saro Wiwa and 8 other Ogoni activists who opposed Shell in Nigeria.

In 2007, following the baton charge and other incidents in which people were injured, GSOC sought to do a “policies and practices” investigation into the policing of Shell/Corrib protests. However, the then Minister for Justice Brian Lenihan denied GSOC permission to carry out this investigation. As the 2010 Frontline report stated this created “the impression that the State does not want the Garda Síochána held properly to account over the policing of the Corrib dispute”. [2]

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Shipping to become ‘major new sector’ for LNG: Shell

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by Angela Macdonald-Smith: 2 November 2016

Demand for LNG as a ship fuel has emerged as a much needed new source of growth in the oversupplied market, with oil giant Royal Dutch Shell giving a bullish assessment of the impact of tighter international rules on maritime emissions.

Shell’s head of integrated gas Maarten Wetselaar told investors in London that between shipping and trucking, the transport sector had become “a major new sector” for the LNG market.

The shipping market and the heavy trucking market together represent about 750 million tonnes of potential LNG demand, about three times the current global LNG supply, Mr Wetselaar said. He signalled that last week’s announcement of new rules on emissions from shipping had made Shell more positive on demand from the sector, noting it was an area where the competition was oil rather than cheap coal.

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Shell Among New LNG Sellers for Asia Gas Hub Contender Singapore

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By Ann KohSerene Cheong and Dan Murtaugh: Oct 24, 2016

Singapore, which is vying to become a regional center for the trading of liquefied natural gas in Asia, picked Royal Dutch Shell Plc and Pavilion Gas Pte Ltd. as its next suppliers of the fuel.

The companies will have exclusive rights to sell 1 million metric tons of LNG annually for up to 3 years, with imports beginning in 2017, the city-state’s Energy Market Authority said in a statement. The country will also consider spot purchases of the supercooled fuel and piped natural gas on a case-by-case basis, S. Iswaran, the Minister of Industry, said at the Singapore International Energy Week conference on Monday.

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Singapore awards new LNG import licences to Pavilion Gas and Shell Eastern Petroleum

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By Ann Williams

SINGAPORE – Pavilion Gas and Shell Eastern Petroleum have won exclusive contracts to supply Singapore with its next tranche of liquefied natural gas (LNG), beating out Sembcorp Industries and BG Singapore Gas Marketing.

“These two companies were selected on the basis of the reliability, flexibility and competitive-pricing of their LNG supplies,” said Mr S. Iswaran, Minister for Trade and Industry (Industry). “They have also secured strong support from buyers.”

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Singapore awards LNG import licences to meet future demand

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* Pavilion Gas, Shell win Singapore LNG import licences

* Importers offer shorter term contracts, alternate indices

* Immediate rise in LNG demand unlikely – traders (Updates story with Shell’s comments, details)

screen-shot-2016-10-20-at-23-00-27By Mark Tay: SINGAPORE, Oct 24

Pavilion Gas and Shell Eastern Petroleum have been appointed as importers of liquefied natural gas (LNG) into Singapore, the trade minister said on Monday, as the city-state gears up to take more LNG.

Singapore, which relies almost exclusively on gas for electricity generation, currently takes the bulk of its gas via pipelines from Malaysia and Indonesia but is expected to boost LNG shipments in coming years.

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Shell’s $30bn divestment programme: What we know so far

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Written by Mark Lammey – 22/10/2016 5:30 am

Oil and gas giant Shell plans to sell $30billion worth of assets from 2016 to 2018 to offset the cost of its $50billion takeover of BG Group, which was completed in February.

By the end of June, 2016, Shell had completed deals worth $1.5billion, according to its half-year results update.

Of that sum, $820million was generated by offloading interests in Shell Midstream Partners, while $560million came from the sale of property, plant and equipment and businesses.

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Gazprom and Shell Reaffirm Strategic Cooperation

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By MarEx 2016-10-05 19:55:14

Alexey Miller, Chairman of the Gazprom Management Committee, and Ben van Beurden, Chief Executive Officer of Shell, discussed developments in their strategic cooperation, signed in 2015, this week at the sixth St. Petersburg International Gas Forum.

The parties discussed a wide range of issues related to the development of strategic partnership in the energy sector, paying particular attention to the construction project for the third production train of the LNG plant on Sakhalin Island (Sakhalin II project). It was noted that the preparation of design and FEED documentation is nearing completion.

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Russia sets eyes on Baltic energy market

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cropped-Screen-Shot-2016-09-09-at-20.58.10.jpgBy Daniel J. Graeber

Russian energy company Gazprom is reviewing options for highly maneuverable gas shipments from Baltic states aside from pipeline commitments, an official said.

Alexander Medvedev, the deputy CEO at Gazprom, said the company signed an agreement with Dutch supermajor Shell to review marketing options for liquefied natural gas from eastern European states bordering the Baltic Sea.

“The memorandum with Shell on the marketing model was signed yesterday for the Baltic LNG,” he was quoted by state news agency Tass as saying.

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Carnival to power cruise ships with LNG

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UPI: Carnival to power cruise ships with LNG

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By Daniel J. Graeber: Oct 3, 2016

Maritime travel company Carnival Corp. said Monday it signed a deal to power its cruise ships with liquefied natural gas from Dutch energy company Shell.

Carnival said it signed up to become the first company of its kind to power vessels with liquefied natural gas. At the onset, Shell will supply LNG to two ships set for launch in 2019. The travel company said the agreement is part of a green initiative meant to reduce its environmental footprint.

“We are committed to reducing our air emissions and improving air quality by evaluating new and established solutions such as LNG — an especially promising option because of its environmental and other benefits,” Tom Strang, senior vice president of maritime affairs for Carnival Corp., said in a statement.

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Shell To Supply Liquefied Natural Gas For Carnival Cruise Ships

cropped-Screen-Shot-2016-09-09-at-20.58.10.jpgShell To Supply Liquefied Natural Gas For Carnival Cruise Ships

Mon, 3rd Oct 2016 11:25

PANAMA (Alliance News) – Cruise operator Carnival PLC announced it has signed a framework agreement with Shell Western LNG BV, a unit of Royal Dutch Shell PLC, to be its supplier of marine liquefied natural gas to power the fully LNG-powered cruise ships.

Under the agreement, Shell will initially supply Carnival Corporation’s AIDA Cruises and Costa Cruises brands with fuel for two new LNG-powered ships expected to launch in 2019.

The agreement builds on the partnership established between Carnival Corporation’s AIDA Cruises brand and Shell in April to supply its AIDAprima ship with LNG to power the vessel while docked.

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Australian Government unconvinced about FLNG safety claims

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By Bill Campbell (Retired HSE Group Auditor, Shell International)

Comment on: Shell Australia’s giant Prelude floating LNG project likely to come on stream in 2017

(refer to 295-page Report by Economics and Industry Steering Committee issued 7 May 2015)

Much has been written on this website about FLNG, the Prelude specifically raising doubts about the validity of claims by Shell that FLNG risks are as safe as if not more so than conventional offshore installations. The Government report raised considerable concerns in relation to the safety of FLNG facilities. In particular, concerns were raised about the compact nature of the working environment offshore relative to the space afforded to an onshore LNG processing plant and that the facilities will remain manned during cyclonic storms.

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Russia’s Sakhalin-2 partners agree on LNG marketing strategy for third train – Shell

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screen-shot-2016-09-28-at-11-44-04YUZHNO-SAKHALINSK, Russia, Sept 28 (Reuters) – Partners at Russia’s Sakhalin-2, the sole liquefied natural gas (LNG) plant in the country, have agreed on the strategy of marketing LNG from the planned third train, Olivier Lazare, head of Royal Dutch Shell in Russia, told a conference.

Sakhalin-2 is currently operating two LNG production trains with combined capacity of around 10 million tonnes of LNG per year. The planned third train should add another 5 million tonnes of annual capacity.

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What Royal Dutch Shell Is Doing To Solve LNG’s Biggest Challenge

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By Gary Bourgeault: 19 Sept 2016

There is one basic thing Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B) needs to do to take full advantage of its LNG strategy, and that is to boost demand by increasing the number of fueling stations in the markets they’re competing in.

It has been marketing its LNG brand for some time, but it hasn’t had the desired impact in the short term because the infrastructure isn’t in place to respond to demand. If it can’t service demand than marketing efforts are underwhelming to say the least.

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Royal Dutch Shell: An Unsustainable Dividend

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Jesse Moore: Sept 15, 2016

Summary

  • Shell is funding its dividend and capital expense programs through a combination of debt and asset sales.
  • Those assets are operating, economic assets that provide long-term value to the company under its assumptions.
  • Shell has one year of leeway at current prices to fund its dividend after that rising debt will put too much pressure on the companies balance sheet.
  • Since I have a negative outlook on prices till at least 2018, I expect a Shell dividend cut in the first half of 2017.
  • Adding to the long list of resource companies with debt-funded dividends, we have Royal Dutch Shell (RDS.A, RDS.B). With a current yield of nearly 8%, and assuming you knew nothing about oil and gas, you could reasonably conclude this company is in peak operating condition. Unfortunately for investors, that story would be far from true.

Capital Expense – Free Cash Gap Growing

Many Shell investors focus on the stability of the dividend as a hallmark of the stock. Those investors are seemingly immune to what the balance sheet, cash flow statement tell us. As the company has pushed towards gas and is being pushed by its investors towards renewables, the capital expense bills have piled up. Throughout the oil downturn, Shell has hardly reduced capital expense in line with free cash flow – a result of long-term project planning that cannot be reined in.

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Big Oil’s New Focus on Natural Gas

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By SARAH KENT: Sept. 13, 2016 10:02 p.m. ET

Royal Dutch Shell ’s truck filling station at Rotterdam’s Waalhaven harbor in the Netherlands isn’t your typical fueling spot. Alongside the diesel pumps are fuel tanks with a special nozzle used to pump liquefied natural gas—an experiment that Shell is hoping can help it stay ahead of shifting trends in energy consumption.

Shell’s LNG fueling stations in Waalhaven and elsewhere are just one piece in a grand strategy to build new markets for the company’s growing natural-gas business—and get a jump on the competition.

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Shell gets go-ahead for frontline robot to monitor Kazakh site

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Andrew Ward, Energy Editor: September 13, 2016

Royal Dutch Shell has developed a robot to monitor equipment and carry out safety checks at a remote facility in Kazakhstan — marking one of the most sophisticated examples of robots replacing humans on the front lines of the oil industry.

Shell said the Sensabot was undergoing final testing in the Netherlands before being deployed to Kazakhstan. The group plans to roll it out to other remote oilfields, as well as potential roles in refineries, chemical plants and LNG terminals.

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Chevron Corporation, Royal Dutch Shell: Is the LNG Market Nearing Saturation?

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By Staff Writer on Sep 7, 2016 at 3:19 pm EST

In the past few years, the global energy market has undergone major changes. The usage of traditional energy resources has dropped significantly, while demand for cleaner, environmental-friendly energy sources has escalated. People are now increasingly becoming aware of the effects of greenhouse gases emissions from conventional energy sources, crude oil, and coal on our natural environment and most importantly, the ozone layer.

Last year, the Paris Agreement (COP21) was a major breakthrough for the renewable industry, as leaders from around 195 countries agreed to curb their carbon emissions. The energy producers aim to maintain the rise in global temperature to 2 degrees above pre-industrial levels in the coming few years. The agreement has provided a positive momentum to the green-tech resources as a number of international energy companies have now started to increase their exposure in the segment.

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Shell Looking Beyond Petroleum

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There are many players looking to enter the oil markets thanks to the raft of deals available as the oil price crash appears to be over. For the oil majors, this will likely mean major opportunities to snap up unconventional producers and assets at low valuations. One “oil” major that may not be participating is Shell. The Anglo-Dutch oil giant is increasingly turning away from its roots in oil and moving towards natural gas as an alternative.

In the year 2000, 37 percent of Shell’s production was from natural gas. By 2015, that number had risen to 49 percent. For ExxonMobil, those figures were 40 percent in 2000 and 43 percent in 2015. For Chevron and BP, the 2000 figures were 27 percent and 40 percent respectively, and for 2015, it was 33 percent and 38 percent. Among oil majors, only ConocoPhillips has seen a comparable shift to gas going form 33 percent to 43 percent gas production between 2000 and 2015.

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Shell Says While Gas Is the Future, It Won’t Be Traded Like Oil

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At the moment, there is a global glut of natural gas…

Screen Shot 2016-08-29 at 22.18.50By Kelly Gilblom and Rakteem Katakey: August 30, 2016

Natural gas is rapidly becoming one of the most traded global commodities, but that doesn’t mean it will have a global price, according to Royal Dutch Shell Plc.

While the fuel can be transported anywhere on liquefied natural gas carriers, it will probably remain regionally priced for the time being, with some contracts continuing to track oil, said Roger Bounds, senior vice president for global gas at Shell. Prices will depend on location, regulation and infrastructure, as some countries replace coal in electricity generation to cut carbon emissions.

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Shell Australia attacks Victoria’s ban on fracking, gas moratorium

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John Dagge, Herald Sun: August 30, 2016 

SHELL Australia has blasted the Victorian government’s move to permanently ban fracking and extend a moratorium on conventional onshore gas development, saying it will result in higher energy bills.

Chairman Andrew Smith has also warned the decision will cost the state investment dollars and jobs and make it more difficult for manufacturers, already under pressure, to stay in business.

“Every Victorian household and business will now pay higher energy prices moving forward,” Mr Smith said.

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Joint-venture partners in Browse open to new options

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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.

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Can OPEC save BP plc and Royal Dutch Shell plc?

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By Ian Pierce – Thursday, 25 August, 2016

Oil majors must long for the halcyon days when a sustained period of low crude prices could be expected to send OPEC riding to the rescue with sweeping production cuts and a promise to boost global prices. Now, two years into a global supply glut that shows few signs of lifting, do oil majors need an OPEC to finally take action?

BP (LSE: BP) wouldn’t say no to the help. Interim results released last month saw underlying replacement cost profits, its preferred metric of profitability, slump 67% year-on-year. Add in a $2bn statutory loss for the period and net debt leaping to $30.9bn and worries have rightly begun to proliferate that dividends will be slashed sooner rather than later.

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The Panama Shortcut

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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.

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Shell Calls Force Majeure on Nigeria Gas Supply After Leak

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Screen Shot 2016-08-05 at 09.29.20By Paul Burkhardt and Elisha Bala-Gbogbo: August 10, 2016

Royal Dutch Shell Plc said its local unit has declared force majeure on supplies to a liquefied natural gas plant in Nigeria because of a leak in a pipeline as the OPEC member suffers from militant attacks on energy infrastructure that are hurting exports.

“The pipeline has been shut down for a joint investigation visit into the cause of the leak and repairs,” Natasha Obank, a Shell spokeswoman, said in a statement. The leak occurred on the Eastern Gas Gathering System, or EGGS-1, pipeline which supplies the bulk of Shell’s gas to the Nigeria LNG plant on Bonny Island. Some supply continues through other pipelines, Shell said.

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Oil giants’ profits on the skids as crude price dives

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  • BRADLEY OLSON, SELINA WILLIAMS
  • The Wall Street Journal
  • 12:00AM August 1, 2016

The world’s biggest oil companies posted losses or steep declines in profit for the second quarter, and now face a daunting remainder of the year as crude prices retreat to about $US41 a barrel.

ExxonMobil on Friday reported its quarterly profit fell 60 per cent to the lowest level since 1999, while Chevron disclosed its biggest quarterly loss since 2001. The results capped a bad week for big Western oil companies: BP and Royal Dutch Shell earlier posted earnings that disappointed investors.

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Gorgon full output delayed until mid-2017

Screen Shot 2016-07-31 at 18.30.44Brian Robins: August 1 2016

A series of commissioning problems has delayed the timing of when Chevron Corp expects the giant Gorgon gas export project to be in full production, until well into 2017.

Since it began to bring the initial stage of the project on stream, it has encountered a series of problems that have forced it to halt processing from time to time, and it has now told analysts the first unit is operating at only a little over two-thirds of its rated capacity.

Production was halted for two months soon after the initial exports of gas, forcing Chevron to push back towards mid-2017 when it expects the project to be fully operational, from earlier this year.

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

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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.

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LNG takes another lurch toward financial oblivion

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Lachlan Barker: 27 July 2016

The future for gas companies is looking grim and this means market forces will effect what our governments should have done and force the industry’s closure, says Lachlan Barker.

THE FINANCIAL REPORTING news for Queensland’s liquefied natural gas (LNG) companies is disastrous – for yet another quarter.

Santos were the first out with their second quarterly production report and even I – a fairly close observer of the LNG market – couldn’t quite believe what I was seeing.

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Is Gas The Future? Shell Seems To Think So

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By Gregory Brew – Jul 20, 2016

The world’s second largest private oil company sees a new future, and it’s not in oil.

Shell has made a concerted effort to shift the bulk of its business from oil-related projects to natural gas, LNG and renewables. Coming on the heels of its February purchase of BG Group (a $54 billion acquisition), Shell has organized a division focused solely on renewable energy. It announced new investment for its LNG facility on Curtis Island in Australia, where natural gas has enjoyed $180 billion in new capital. It has emerged as a stronger voice on global climate change than its competitor ExxonMobil and the company’s website proposes a number of “Shell Scenarios” that could allow for a growing energy market while creating less CO2.

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The Future of Big Oil? At Shell, It’s Not Oil

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Screen Shot 2016-07-20 at 07.42.44The energy giant is shifting to gas as the industry adapts to climate change.

By Matthew CampbellRakteem Katakey and James Paton: 20 July 2016

At Australia’s Curtis Island, you can see Big Oil morphing into Big Gas. Just off the continent’s rugged northeastern coast lies a 667-acre liquefied natural gas (LNG) terminal owned by Royal Dutch Shell, an engineering feat of staggering complexity. Gas from more than 2,500 wells travels hundreds of miles by pipeline to the island, where it’s chilled and pumped into 10-story-high tanks before being loaded onto massive ships. “We’re more a gas company than an oil company,” says Ben van Beurden, Shell’s chief executive officer. “If you have to place bets, which we have to, I’d rather place them there.”

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Royal Dutch Shell: Does Everything Come Down to Oil Price Recovery?

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By Staff Writer on Jul 19, 2016 at 9:07 am EST

World’s leading integrated oil and gas company, Royal Dutch Shell plc (ADR) (NYSE:RDS.A), concluded a deal to acquire BG not too long ago. The move was widely perceived as an aggressive step to become a dominant supplier of liquefied natural gas (LNG) across the globe. The deal is expected to help Shell diversify its operations and enable it to benefit from cost synergies in the years to come.

The merger came at a time when oil prices were on a downward trajectory, with the step expected to drive the company out of the downturn. Oil prices that were once above $110 per barrel have now plunged below $50. Last year, when the Dutch company announced the deal, many mergers and acquisition pundits criticized Shell’s willingness to pay 50% premium in a depressed crude oil environment.

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American Gas Will Be First to Pass Through Expanded Panama Canal

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Naureen Malik: July 19, 2016

Shell set to send tanker carrying U.S. LNG through canal

BP scheduled to send second tanker through the following day

The first cargo of liquefied natural gas set to pass through the newly expanded Panama Canal locks will be American.

Royal Dutch Shell Plc’s Maran Gas Apollonia vessel is scheduled to pass through the canal linking the Atlantic and Pacific oceans on July 25 after loading LNG from the U.S. Gulf Coast, according to the Panama Canal Authority, which oversees the locks’ operations. BP Plc’s British Merchant LNG tanker is expected to become the second to pass through the canal the following day and a third tanker is slated for early August, the agency said in a statement late Monday.

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Getting Ready for Another Round of Commodity Market Downturn

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By Staff Writer on Jul 18, 2016 at 7:30 am EST

Crude oil prices have dropped below the $50 per barrel mark yet again after hitting their highest level in 2016 last month. US crude benchmark, West Texas Intermediate (WTI) is trading at $45.97 per barrel while Brent is trading at $47.69 per barrel in European Markets today. The global crude oil benchmark reached as high as $52.51 per barrel earlier in June.

Although oil prices have recovered some momentum after touching 12-year lows of $27 per barrel earlier in 2016, it still has a lot of ground to gain before reaching summer-2014 levels. Oil market showed some positive gains in June when oil prices crossed the psychological barrier of $50 per barrel. However, it was short-lived as it is currently trading below $48 per barrel.

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Royal Dutch Shell Vs BP plc: Who’s Better Equipped to Tackle the Downturn?

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By Muhammad Ali Khawar on Jul 15, 2016 at 10:04 am EST

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) finally closed its $52 billion merger with BG group in February. The deal is considered as one of the largest mergers in the oil and gas sector and is expected to help Shell diversify its operations and benefit from cost synergies.

The Shell-BG merger comes at a time when oil prices have plummeted significantly. Oil prices that once traded over $110 per barrel have now tumbled to as low as $50 per barrel. Last year, when Shell approached BG for the first time, many criticized the deal especially because of the 50% premium Shell was willing to pay in a depressed crude environment.

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Shell chair Andrew Smith vows to rein in costs as downturn bites

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ANDREW BURRELL: July 15, 2016

Shell Australia chairman Andrew Smith says the downturn in the oil and gas industry has strengthened his resolve to rein in costs as he seeks to integrate the company — the nation’s biggest foreign investor — with the Queensland assets of BG Group.

“You have to treat every dollar like it’s your own,” Smith tells The Deal, published in The Australian today, as he reflects on his 30-year career and the massive changes that have hit Shell and the petroleum industry. His mantra even extends, Smith’s colleagues reveal, to their boss’s insistence a few years ago that newspaper subscriptions be pared back in the company’s Melbourne office.

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