One Floating LNG Dream Sinks As Another Gets Ready To Float
Unfortunately for Shell it formally committed to the Prelude development in May, 2011, a time when oil was selling for around $120 a barrel, three-times the current price of around $41/bbl.
By Tim Treadgold: March 23, 2016
No-one blinked and share prices barely fluttered when a $40 billion plan by Australia’s Woodside Petroleum ngIf: ticker to develop a floating liquefied natural gas (LNG) project was torpedoed earlier today.
However, the knock-on consequences of sinking the Browse project will be felt most acutely at Europe’s biggest oil company, Royal Dutch Shell ngIf: ticker .
The immediate impact on Shell is that it has a 27% interest in the Woodside-led Browse LNG project, but it is also nearing completion of the world’s biggest floating LNG barge, the $12.6 billion Prelude project.