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Posts Tagged ‘LNG’

Shell to Seek 800 Million-Euro Offers for LPG Unit

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By Anne-Sylvaine Chassany and Fred Pals

Feb. 23 (Bloomberg) — Royal Dutch Shell Plc, which is seeking to focus on exploration and production, may sell its liquefied petroleum gas distribution unit, four people with knowledge of the plan said.

Shell hired Credit Suisse Group AG to manage a sale of the division, which is valued at more than 800 million euros ($1.1 billion), said three of the people, who declined to be identified because the talks are private. The company sent information last week to potential bidders including private equity firms, they said. Rainer Winzenried, a spokesman for The Hague-based Shell, declined to comment.

Shell aims to save $1 billion this year and will cut 1,000 more jobs in an effort to weather the economic slowdown, which has led to high inventories of fuels like gasoline and diesel in the U.S. and Europe. Shell processed 9 percent less crude in 2009 and is in talks to sell its U.K. Stanlow refinery and two German plants to India’s Essar Oil Ltd.

Shell in 2004 offered its LPG distribution and marketing business up for sale and sold some LPG units, including those in Portugal, Brazil, Paraguay, Italy and parts of the Caribbean for around $350 million. Repsol YPF SA of Spain bought Shell’s Portuguese business in December 2004 and said it bid for the whole LPG unit. Shell in 2006 said it would keep parts of its LPG business that weren’t already been sold because it wasn’t offered enough for them.

–Editors: Stephen Cunningham, Will Kennedy.

To contact the reporters on this story: Anne-Sylvaine Chassany in Paris at +33-1-5365-5078 or achassany@bloomberg.net Fred Pals in Amsterdam at 31-20-589-8563 or fpals@bloomberg.net

To contact the editor responsible for this story: Edward Evans at +44-20-7073-3190 or eevans3@bloomberg.net

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US rights group supports Corrib residents

A REPORT for a US human rights group on the Corrib gas project says that residents in north Mayo had been given “false information” and “their legal rights have been trampled upon”.

Click to continue reading “US rights group supports Corrib residents”

Shell CEO says prepared to study Yamal LNG project

Reuters

[caption id="" align="alignright" width="330" caption="Royal Dutch Shell CEO Peter Voser"]Royal Dutch Shell CEO Peter Voser[/caption]

Thu Sep 24, 2009 7:32am EDT

SALEKHARD, Russia, Sept 24 (Reuters) – Royal Dutch Shell (RDSa.L) is prepared to undertake a feasibility study of a project to produce liquefied natural gas (LNG) in the northern Russian region of Yamal, Chief Executive Peter Voser said.

Voser made the statement on Thursday at a meeting between Russian officials and foreign energy executives.

(Reporting by Gleb Bryanski, writing by Robin Paxton)

Shell Welcomes Putin’s Sakhalin Offer

Prime Minister Vladimir Putin offered Royal Dutch Shell a role in the Sakhalin-3 and Sakhalin-4 natural gas projects on Saturday, just 2 1/2 years after Europe’s biggest oil producer was forced to cede control of Sakhalin-2 to Gazprom.

Click to continue reading “Shell Welcomes Putin’s Sakhalin Offer”

Russia invites Shell back to Sakhalin as finances plummet

In a surprise move, Russian prime minister Vladimir Putin invited Royal Dutch Shell to help develop two new oil and gas fields on Sakhalin Island, just three years after the government forced the company to cede majority control in the Sakhalin 2 project to state-controlled group Gazprom.

Click to continue reading “Russia invites Shell back to Sakhalin as finances plummet”

Shell Pressing On With Gladstone LNG, Open To Consolidation

SYDNEY (Dow Jones)–Royal Dutch Shell PLC (RDSB.LN) says it’s open to consolidation with rival liquefied natural gas projects in Queensland state but is pressing ahead with plans for a terminal on its own.

Click to continue reading “Shell Pressing On With Gladstone LNG, Open To Consolidation”

Shell says more global refining capacity than needed

Reuters

Mon Jun 8, 2009 2:23am EDT

KUALA LUMPUR (Reuters) – Royal Dutch Shell (RDSa.L) CEO Jeroen van der Veer said on Monday that looking at current poor margins, the world has more oil refining capacity than needed.

But van der Veer said he is seeing early signs that Western gasoline and diesel markets are steadying after a slump late last year, adding that the next oil price spike may already be in the works due to the long lead time for investments to boost output.

“It’s a real cyclical industry. If you look at margins there’s more refining capacity than one needs,” he told reporters at a conference in the Malaysian capital.

“Everyone has to decide what they can do, we prefer to refine more heavy crude, so that when refining margins are depressed, we can still make a bit of a living out of it.”

He said that seasonal factors or destocking may have started to help the diesel and gasoline markets in the United States and Europe to stabilize.

“We see signs of stabilization, but it’s very early days,” he said. “We hope that we see the signs correctly, it would be good news if it stays like that.”

A senior Shell executive for retail in Europe told the Reuters Energy Summit last week that it has seen a pickup in demand for oil products across Europe in recent months.

But a major Asian trader, Hin Leong Trading, told the summit that the distillates market was still underperforming and was unlikely to return to its peak until the global economy picks up.

NEXT SPIKE IN THE MAKING

Van der Veer said investments in oil projects now have a lead time of about four to five years.

“The system is slow to react. The next price spike may already be in the making,” he earlier said in a keynote address to the Asia Oil and Gas Conference.

He also told reporters that one reason for the spikes in crude oil prices are trades in the derivatives markets.

“Our people did a lot of studies on the oil price. For price spikes, the derivatives and open positions played a role, but we are less sure to say they were the culprit,” he said, adding that the relationship between the paper and physical markets is a much more complex phenomenon.

Global crude prices jumped to a record above $147 a barrel in July last year, before sliding to around $32 in mid-December. Prices have since rebounded to near $70.

Van der Veer said that liquefied natural gas (LNG), which only accounts for about 2 percent of world energy supply, is “a growth industry for decades to come. We continue to see high demand for LNG.”

“There is a mismatch between where the gas is found and the market for the gas,” he said. “A lot of places need a lot of LNG ships.”

Asked about the development of a floating liquefaction terminal for production of LNG in Asia, van der Veer said:

“We think floating LNG will come in this part of the world. There are many small gas fields far away from the coast. The industry needs to find an economically viable solution but that is still quite a stretch.”

Shell, which aims to become an exporter of LNG from Egypt using gas from offshore discoveries, is considering, among other options, a floating liquefaction terminal for production of its LNG in Egypt, but had said it was too soon to limit itself to one plan.

(Writing by Ramthan Hussain; Editing by Michael Urquhart)


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Carbon Plan Puts Unfair Burden on LNG, Woodside Says

Woodside, 34 percent held by Royal Dutch Shell Plc, operates and owns one-sixth of the North West Shelf Venture, Australia’s biggest LNG producer, and is building the A$12 billion ($9.7 billion) Pluto LNG project. It’s among companies proposing some 10 LNG developments in Australia and Papua New Guinea targeting a forecast gain in demand in north Asia for cleaner-burning fuel.

Click to continue reading “Carbon Plan Puts Unfair Burden on LNG, Woodside Says”

Mitsui in talks with Gazprom to expand tie-up

Mitsui, fellow Japanese trading firm Mitsubishi Corp and Royal Dutch Shell are Gazprom’s partners at the Sakhalin-2 project, which recently shipped Russia’s first liquefied natural gas to Japan.

Click to continue reading “Mitsui in talks with Gazprom to expand tie-up”

China secures 1st spot LNG cargo from Russia-sources

Shell Chief Executive Jeroen van der Veer said at least four LNG shipments had sailed from Sakhalin to various destinations since late last month.

Click to continue reading “China secures 1st spot LNG cargo from Russia-sources”