Shell focus on Australia

Besides the acquisition of Arrow Energy in partnership with PetroChina, Shell is also making plans for a floating LNG development for its Prelude field and is a partner in Chevron’s giant Gorgon LNG project.

CS CSG could grow to a 16 million tonne per annum project using gas sourced from Arrow and Shell’s coal seam gas assets in Queensland, while Prelude is being designed as a vessel with the ability to produce up to 4MMtpa of LNG.

Lastly, but not least, Shell’s 25% stake in Gorgon gives it 3.75MMtpa of its production though this could grow to 6.25MMtpa.

Shell also holds a stake in the Woodside Petroleum-led Sunrise LNG project, which has selected FLNG as its preferred development option.

Shell Australia chairman Ann Pickard told Bloomberg Shell may spend $30-50 billion in Australia in the next decade as gas becomes increasingly important for the supermajor with more than 50% of its production expected to come from gas by 2012.

She added the company may commit to additional FLNG projects.

Pickard had said in May during the 50th annual Australian Petroleum Production & Exploration Conference and Exhibition that Shell was planning to add around 15MMtpa of LNG capacity by 2020 with most of that focused in Australia.

She also told the Courier Mail the company was confident of finding a market for its gas through its CS CSG partner PetroChina.

She said the duo would make a final investment decision on CS CSG’s planned LNG plant adding that a joint venture with one of the other projects planned for Curtis Island was preferable.

“One project with a whole bunch of trains would be best. Shareholders don't want us to waste money.”

However, Pickard conceded that while consolidation made sense, the industry did not always do the sensible thing.

 
Monday, 23 August 2010
PetroleumNews.net
http://www.petroleumnews.net/StoryView.asp?StoryID=1139227