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Bloomberg: From Texas to Tokyo, Global LNG Poised for Terrible Year

Stephen Stapczynski, Anna Shiryaevskaya and Naureen S. Malik. Bloomberg

(Bloomberg) — Liquefied natural gas prices are poised to test record lows this year thanks to an onslaught of supply and warmer temperatures, throwing up risks and opportunities for the producers, buyers and traders behind the world’s fastest-growing fossil fuel.

The startup of new export projects from Australia to the U.S. has flooded the market, while brimming stockpiles in Europe and an expected slowdown in Chinese demand have dumped cold water on consumption prospects. LNG for spot delivery to North Asia is on track to hit an all-time low this summer, while gas prices in Europe and the U.S. are trading at the weakest seasonal levels since 1999. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

investors CHRONICLE: Shell’s LNG bet looks sound despite glut

Mark Robinson

When Royal Dutch Shell (RDSB) launched its £35.6bn bid for BG Group, it was easy to appreciate the strategic rationale. At a stroke, the Anglo-Dutch energy giant not only bolstered its reserves, but also shored-up its position in a global liquefied natural gas (LNG) market which had grown rapidly since the turn of the millennium.

Shell wasn’t alone in increasing its exposure to the sector, but investors may now be questioning whether long-term prospects in gas markets warrant the massive capital allocation. A supply glut, most noticeably in the US Permian basin, weighed on gas prices last year, and there are few signs of respite as new fields in Australia and Russia come online. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

TIME MAGAZINE: The Reason Fossil Fuel Companies Are Finally Reckoning with Climate Change

Shell must grapple with its own existential crisis: How should a company that generates most of its profits by serving the world’s enormous appetite for oil navigate a long-term future in which shifting political and economic tides threaten to make fossil fuels obsolete?

BY JUSTIN WORLAND

A peculiar theme park in the Hague celebrates the history of the Netherlands through a series of miniature models. The Madurodam features little canals, old-fashioned windmills, tiny tulips and, amid it all, an homage to Royal Dutch Shell, the oil giant that is the biggest company in the country and, by revenue, the second largest publicly traded oil-and-gas company in the world. There’s a Shell drilling platform, a Shell gas station and a Shell natural-gas field, complete with a drilling rig. The display is at once odd–energy infrastructure in a children’s theme park–and entirely fitting: Shell has been, for decades, one of the most powerful players both in Dutch politics and on the global economic stage. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

REUTERS: Nigeria inks major LNG expansion with oil majors

Reporting by Camillus Eboh in Abuja and Libby George in Lagos, Dec 27, 2019

* Train 7 will boost LNG output to 30 mln t/y

* Deal shows “renewed confidence” from investors – Kyari

* FID was delayed from Q4 2018

ABUJA/LAGOS, Dec 27 (Reuters) – Nigeria signed a major gas expansion deal on Friday, a much-needed collaboration with oil majors that Nigeria LNG said would boost its liquefied natural gas output by more than 30%.

The agreement marks a moment of amity with international oil majors, even as a tax dispute and a new law increasing the government’s take on deepwater oil production have irked some companies.

The final investment decision on the Train 7 processing unit at the Bonny Island plant was signed by Nigeria LNG partners state-run Nigerian National Petroleum Corporation (NNPC), Eni , Total and Royal Dutch Shell in Abuja. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Nord Stream 2 Confrontation

English translation of two Nord Stream 2 articles published today by the Dutch FD.

Berlin convinced: sanctions cannot stop the construction of the last 160 km of Nord Stream 2

By Pieter Lalkens and Jeroen Groot: 24 Dec 2019

The Solitaire was one of the ships of the Dutch-Swiss offshore company Allseas who worked on the Nord Stream 2. Gas pipeline. Photo: Reuters

In brief

  • Allseas has stopped the construction of Nord Stream 2 under pressure from the American sanctions.
  • But the gas pipeline is simply being phased out, German politicians expect.
  • The latter does entail delays and higher costs.

Although the Dutch-Swiss offshore group Allseas has stopped the construction of Nord Stream 2 under pressure from US sanctions legislation, the gas pipeline from Russia to Germany will be phased out in the view of German politics. The sanctions will only lead to a few months delay and higher costs.

“I assume that the Nord Stream 2 gas pipeline will be delivered in the second half of 2020,” said Peter Beyer, member of the Foreign Affairs Committee of the German parliament, in a conversation with radio station Deutschlandfunk on Monday. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Reuters: Nord Stream 2 to Press on With Europe Gas Pipe, Despite U.S. Sanctions

Nord Stream 2 contractor, Swiss-Dutch company Allseas, announced on Friday it had suspended pipe-laying activities. Nord Stream 2, which aims to double the Nord Stream route’s existing capacity of 55 billion cubic meters (bcm) of gas a year, is owned by Gazprom, which is financing half of the project worth about 9.5 billion euros ($10.5 billion). Other partners in Nord Stream 2 are Austria’s OMV, the German firms Uniper and Wintershall, Anglo-Dutch energy major Royal Dutch Shell…

By Reuters: Dec. 21, 2019

MOSCOW — The group behind Nord Stream 2 said on Saturday it aimed to complete a pipeline to boost Russian gas supplies to Europe as soon as possible, after U.S. sanctions prompted a major contractor to suspend pipe-laying activities.

U.S. President Donald Trump signed a bill on Friday that included legislation imposing sanctions on firms laying pipe for Nord Stream 2, which seeks to double gas capacity along the northern Nord Stream pipeline route to Germany.

Washington, which has been seeking to sell more of its own liquefied natural gas (LNG) to European states, has said Nord Stream 2 will make Europe too reliant on Russian supplies. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Japan and Russia set to launch $9bn LNG project in Far East

ARTICLE EXTRACT: But projects in Russia also carry risks. Mitsubishi and Mitsui were involved in Sakhalin 2, but their ownership in the project, as well as Shell’s, was reduced in 2006-07 after the Russian government raised environmental issues. Gazprom joined as the largest shareholder.” (This Video features a related TV documentary segment including interviews with John Donovan and the then Russian Environmental Minister, Oleg Mitvol)

TOKYO — A group of Japanese companies and its government are set to launch a new liquefied natural gas project with Russian and U.S. partners in far eastern Russia in a move that may shift the power dynamics of the growing global LNG market.

The project involves Exxon Mobil of the U.S., Russian state oil company Rosneft and Sakhalin Oil and Gas Development, a Japanese consortium that counts Japan’s Ministry of Economy, Trade and Industry as well as Itochu, Japan Petroleum Exploration and Marubeni as shareholders. The parties are in talks to produce LNG from the Sakhalin I Project, which already produces crude oil. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Australian workers concerned Prelude jobs going overseas

Workers concerned Prelude jobs going overseas

A COALITION of two heavyweight unions, the Offshore Alliance, has condemned Shell Australia’s alleged decision to outsource work from Australia to India.

According to the Australian Workers Union and the Maritime Union of Australia, work previously undertaken by Australian employees – including Permit Writing responsibilities – have been outsourced to India, a claim Shell has refuted.

The Offshore Alliance yesterday accused Shell of “training up Indian workers” instead of investing in the local workforce.

“Shell are (sic) on our coast and taking our gas resources – the least they can commit to is using Australian workers for all Prelude related tasks,” Offshore Alliance said.

Permit writing work is generally undertaken by employees familiar with the facility and who have ongoing interaction with project-based personnel.

The Offshore Alliance told Energy News permit writing requires detailed knowledge of work scope, hazards and controls, the isolations and temporary defeats, and that the work was most suitable to Australian workers aboard the Prelude or at the very least based in Australia. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

CNBC: Shell’s third-quarter profits fall 15% on lower oil and gas prices

Sam Meredith: 31 Oct 2019

POINTS
  • Net income attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, came in at $4.767 billion for the third quarter of 2019.
  • That compared with a profit of $5.624 billion in the same quarter a year ago and $3.462 billion in the second quarter.
  • Shares of the Anglo-Dutch oil company are down more than 1% when compared to the same period in 2018.

Oil giant Royal Dutch Shell reported weaker-than-expected third-quarter net profit on Thursday, citing lower energy prices and chemicals margins.

Net income attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, came in at $4.767 billion for the third quarter of 2019. That compared with a profit of $5.624 billion in the same quarter a year ago and $3.462 billion in the second quarter. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

ROYAL DUTCH SHELL PLC 3RD QUARTER 2019 UNAUDITED RESULTS

EXTRACT FROM ROYAL DUTCH SHELL PLC 3RD QUARTER 2019 UNAUDITED RESULTS

31 Oct 2019

Compared with the third quarter 2018, CCS earnings attributable to shareholders excluding identified items were $4.8 billion, reflecting lower realised oil, LNG and gas prices, as well as weaker realised refining and chemicals margins. This was partly offset by significantly stronger contributions from LNG and oil products trading and optimisation as well as higher realised margins in retail and global commercial.

Compared with the third quarter 2018, cash flow from operating activities excluding working capital movements was $12.1 billion, reflecting lower earnings, higher pension contributions and lower dividends received. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell leadership shake-up sends Australian boss to The Hague

Oct 4, 2019

Shell has opted to shake up its leadership ranks in Australia as it beds down the recent acquisition of ERM Power and faces key investment decisions on multibillion-dollar gas projects.

The shake-up will see Shell Australia chairman Zoe Yujnovich move to company headquarters at The Hague.

Ms Yujnovich said on Friday that Australia was central to Shell’s LNG business and for its plans to move into providing cleaner energy.

Her role in Australia will be filled by Tony Nunan, who currently heads up the oil and gas giant’s operations in eastern Australia. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

The Times: BP and Shell projects ‘will become unviable’

The Times

About $50 billion of projects approved by oil companies including Royal Dutch Shell and BP within the past year will fail to deliver economic returns if the world meets the Paris climate goals, according to new analysis.

Shell’s huge Canadian liquefied natural gas project, approved last October, and BP’s latest Azerbaijan oil development, approved in April, are among projects that risk becoming “stranded assets”, according to Carbon Tracker, a not-for-profit think tank, which aims to “align capital markets with climate reality”. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell Prelude claims are ridiculous make-believe nonsensical drivel?

Expert Opinion on the content of the recent Upstream Online article: “Shell learns from Prelude challenges” 

Rob Jager cannot be as naive as this, he has a  distinguished career in Shell and also been appointed by the New Zealand Government to lead investigations into the tragic Mining accident some years ago.  Clearly not a numpty so why is he making such statements claiming the Prelude is such a magnificent project it will operate perfectly and become boring.

Hydrocarbon Production Operations that I have experienced over many years have never been boring ever.  Every day brings something different to be addressed and Prelude is and will be no different.  Prelude is not receiving a semi-processed feed stack to refine or reform or blend but raw reservoir hydrocarbons.  Even in the case of a rich gas hydrocarbon reservoir, the well effluent will contain a full range of hydrocarbon gas mixtures, carbon dioxide, hydrogen sulphide water vapour and a whole host of trace gasses and other undesirable soluble and insoluble salts.  Notwithstanding during initial production or subsequent well work-over, residual drilling fluids and completion debris some of which will have found its way into the umbilicals and hydraulic well control and safety shut down systems and cause untold havoc. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Upstream Online: Shell learns from Prelude challenges?

Upstream Online: Shell learns from Prelude challenges

Shell is currently in the process of ramping up its Prelude floating liquefied natural gas development off Western Australia, but the ambitious project …

Extract ends

Printed below are extracts from recent postings on our Shell Blog relating to the above Upstream Online article and its interview with Shell VP Prelude, Bob Jager.

Posting on 19 August 2019

I would be interested to know the content of the article just published by Upstream Online about the Prelude FLNG problems?

What I do know is that Prelude is still having difficulties in with the processed volumes of any of the three streams of product, LNG, LPG and condensate.

I have been monitoring the Marine Traffic web site with Prelude as the target. The offtake tankers, LNG or condensate, can be seen hanging around but at a greater distance from Prelude making it not as easy to keep track of as in previous occasions. The latest LNG tanker, Symphonic Breeze, has been nearby for nearly a week waiting for its nominated cargo. The demurrage costs must be quite high by now as the “notice of readiness” will have been tabled on arrival. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Shell is standing by its multi-billion-dollar bet on LNG. There are several reasons why it may be wrong to do so

Europe’s largest oil companies shared a common theme in their latest second-quarter financial reports: Shell, Total and BP all partly blamed tepid gas markets for their lacklustre earnings. Hyped as the fuel of the future, liquefied natural gas (LNG) has become an increasingly tricky commodity for the industry to manage.

This could be because of three powerful economic forces now converging and complicating the outlook for the fuel.

Firstly, producers continue to invest billions of dollars into building new LNG projects, despite a growing glut of supply. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

Irish Times: Falling natural gas prices sees Shell caught in a trap

Falling natural gas prices sees Shell caught in a trap

Biggest earnings miss since 2016 underscores recent volatility in firm’s earnings

Royal Dutch Shell fell into the same earnings trap as many of its peers, reporting second-quarter earnings that were well short of analysts’ expectations, as natural gas prices slumped.

Shell is the last big oil company in Europe to report earnings this quarter, rounding out a generally weaker picture for the industry. Eni, Total and Equinor reported lower-than-expected profit due to falling energy prices, although BP surpassed even the highest analyst estimate as its production jumped.

The Anglo-Dutch company is far more focused on natural gas than its peers, accounting for about a quarter of all the world’s traded liquefied natural gasvolumes annually. While this division has helped generate record volumes of cash at Shell in recent quarters, a global oversupply has caused prices to slump. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.
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