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Shell’s Big Bet On Prelude Floating LNG May Be A Flop

By Irina Slav – Jul 15, 2020, 3:00 PM CDT

It was the last of the large LNG projects that put Australia in the lead for global LNG exports. It was the biggest jewel in Shell’s LNG crown. But this jewel hasn’t produced any LNG since February, and its future is unclear.

The Prelude floating liquefied natural gas project, with an annual capacity of 3.6 million tons, began shipping LNG last June. The first cargo shipped more than eight years after the final investment decision was made, and two years after the FLNG vessel arrived at the site, one Wood Mac analyst pointed out at the time. In February this year, production was stopped following a technical problem. 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 at risk of U.S. sanctions over participation in Nord Stream 2

By Timothy Gardner and Humeyra Pamuk

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo on Wednesday warned investors in two Russian natural gas pipeline projects that they could face sanctions as the Trump administration seeks to curb the Kremlin’s economic leverage over Europe and Turkey.

Pompeo told a news conference that European investors in the Nordstream 2 and a branch of the Turkstream pipelines could be “put at risk” of U.S. sanctions under the Countering America’s Adversaries Through Sanctions Act of 2017. The pipelines will carry gas from Russia to Europe and Turkey. 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 Makes Bet on Digital LNG Trading With GLX Investment

Bloomberg: Shell Makes Bet on Digital LNG Trading With GLX Investment

By Dan Murtaugh

Royal Dutch Shell, the world’s biggest liquefied natural gas merchant, is making a bet on the trade’s digital future by taking a minority investment in the online platform developer GLX Digital.

GLX is among a handful of companies using web-based trading to modernize the world of physical commodities and help deepen liquidity. Since creating its online LNG auction hub, the Perth, Australia-based company has shifted toward helping customers create their own digital trading systems. 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.

US Sanctions threat to Shell over Nord Stream 2 

Implications Seen for U.S. LNG as Nord Stream 2 Nears Finish Line

BY  July 10, 2020

Russia will likely complete by next year the undersea Nord Stream 2 (NS2) natural gas pipeline to Germany despite ongoing U.S. efforts to scuttle the $11 billion project, analysts said.

The start-up of the 5.3 Bcf/d NS2 could curb a potential recovery of U.S. LNG exports even if the Covid-19 pandemic recedes next year, said BTU Analytics LLC energy analyst Connor McLean.

“If Nord Stream 2 comes online as expected, the influx of supply into Europe could place further pressure on a U.S. LNG recovery in 2021,” McLean said in a recent post on the firm’s website.

To combat the Russian plan, Sens. Ted Cruz (R-TX), Jeanne Shaheen (D-NH), John Barrasso (R-WY), Tom Cotton (R-AR) and Ron Johnson (R-WI) introduced a bill to sanction any entity that aids in completion of the line. That could include companies that have extensive operations in the U.S., such as Royal Dutch Shell plc, Total SA, Engie and OMV, which have stakes in parts of NS2, and Norwegian maritime classification society DNV. 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 in Stormy Weather Again

If the unions are correct and Shell did intervene in negotiations, those actions would be considered unlawful. 

Shell has refuted the accusations. Shell upholds the highest standards of business ethics and complies with our legal obligations. In everything we do we act fairly, honestly and transparently,” a Shell spokesperson told Energy News this morning. 

Unions threaten strike at Australian offshore platforms

Paul Hunt: Senior Journalist: Oil & Gas, Policy.

09 JULY 2020: UNION MEMBERS will vote on whether or not to conduct strikes across Australian offshore platforms next week, as a brawl over workers rights with contractor Sodexo heats up.

Sources, speaking exclusively to Energy News, said the unions expected to receive a Protected Action Ballot Order from the Fair Work Commission imminently. 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.

Australia bears biggest brunt of Shell write-down

Published date: 03 July 2020

Australia bore the brunt of Shell’s $22bn impairment charge this week, with the write-down reflecting its expansion into unconventional gas and pioneering floating LNG (FLNG) technology with the 3.6mn t/yr Prelude venture.

Shell said it will write down the value of its Australian gas assets by between $8bn-9bn, with up to 40pc of its asset impairment from Australia.

Along with Prelude, the other Australian asset to see its value cut was Shell’s upstream coal bed-methane (CBM) gas fields that provide feedstock for the 8.5mn t/yr Queensland Curtis LNG (QCLNG), which it bought through the £47bn ($58.6bn) purchase of UK energy firm BG Group in 2015. 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.

Trailblazing gas project looks like a costly hangover from the past

Emily Gosden, Energy Editor: The Times

One of the most eye-catching impairments Royal Dutch Shell announced yesterday was of its Prelude floating liquefied natural gas (LNG) project off Australia.

The huge project is one of the largest causes of the $8 billion to $9 billion of writedowns Shell warned it would make in its “integrated gas” division, and highlights the changes that have rocked the energy market in the past decade.

When the Anglo-Dutch group approved Prelude in 2011, it claimed the “revolutionary” development would be “a game-changer for the energy industry”. 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 slashes valuation of oil and gas assets amid coronavirus crisis

Shell slashes valuation of oil and gas assets amid coronavirus crisis

By Mark Williamson: 1st JULY 2020

The company said yesterday it expected to cut the valuation of its integrated gas business by $8 – $9 billion, “primarily in Australia”. It said this would include a partial impairment of the giant Prelude floating liquefied natural gas facility.

ROYAL Dutch Shell has said it plans to slash the valuation of its oil and gas assets by up to $22 billion (£17.9bn) to reflect the expected impact of the Covid-19 coronavirus pandemic on demand and the wider economy. 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 Russia head: We will not be put away by uncertainty

Shell Russia head: We will not be put away by uncertainty

Shell Russia’s Chairman Cederic Cremers has spoken to TASS about oil prices, Nord Stream 2 and new projects

– Oil producers have faced an unprecedented drop in demand this year. Do you think, Mr. Cremers, this can accelerate energy transition and decarbonization process and make an oil peak consumption closer?

– I think that the crisis and the pandemic of COVID-19 clearly put a lot of pressure on our industry – energy demand has dropped, and the impact on the economies around the globe is very real. I do think this volatile market will be with us for a while. We do not expect that there will be a recovery in oil prices or the demand of the products in the medium term. However, we do expect that it will recover in a longer period. 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 says open to new LNG projects in Russia including with Novatek – TASS

Shell says open to new LNG projects in Russia including with Novatek – TASS

MOSCOW, June 29 (Reuters) – Royal Dutch Shell is open to taking part in new liquefied natural gas projects in Russia including with private gas firm Novatek, the TASS news agency cited Shell Russia’s chairman Cederic Cremers as saying on Monday.

Reporting by Anton Kolodyazhnyy; writing by Tom Balmforth; editing by Katya Golubkova

SOURCE

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.

Prelude S*** Storm

POSTING ON OUR SHELL BLOG 25 JUNE 2020

About Dear Rob, he is hardly departing in a blaze of glory, his mission it seems is very much unaccomplished as he departs the scene.

Who will take over the poisoned chalice and get the show on the road?

In what seems a relatively short time Prelude has gone from being the expected Real Madrid of the engineering project world to a sort of Accrington Stanley, maybe being a bit unfair on the latter.

Guess the worst of times was the export of human excrement in paper bags from the installation when the lights went out and nothing on it worked …….. 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’s $12 Billion LNG Experiment Becomes A Big Headache

A series of recent events highlight the challenge Shell has ahead of it with Prelude, and plans for sister vessels which are supposed to follow.

Tim Treadgold Asia: June 23, 2020

The world’s biggest ship is on the way to becoming one of the oil industry’s biggest bloopers.

Prelude, a 600,000-ton monster which is five-times the size of the largest U.S. aircraft carrier, is designed to produce liquefied natural gas (LNG), and other petroleum liquids.

Installed atop a remote gasfield 300 miles off the north-west Australian coast, the 535-yard long Prelude is a bold experiment by the oil major, Royal Dutch Shell. 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 hasn’t exported any cargoes from Prelude FLNG for almost five months

Shell doesn’t expect Prelude FLNG restart before Q3

June 22, 2020, by 

LNG giant Shell is not expecting to restart production at its Prelude FLNG facility offshore Western Australia before the start of the third quarter.

Shell hasn’t exported any cargoes from the FLNG for almost five months following an electrical trip on February 2.

“Start-up timing will depend on Covid-19 constraints and compliance with government directions, which will result in a reduction in the number of people on board the facility”, a Shell spokesperson said in a emailed statement 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.

Shell’s Prelude FLNG project exec, Rob Jager, to depart

Shell’s Prelude FLNG project exec, Rob Jager, to depart

The Shell executive tasked with delivering its $US12bn ($17.5bn)-plus Prelude floating LNG project is set to quit the energy giant.

Jager did not last long…

It was only in December 2018 that his arrival was announced

“Shell Australia, a unit of the Hague-based LNG giant Shell, recently welcomed Rob Jager to Perth as the new vice president for the massive Prelude FLNG project.”

Jager moved to Perth from New Zealand, where he was the Country Chair & VP for Shell New Zealand / Shell Taranaki for more than 13 years. 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.

Maybe the Shell job cuts should start at the top?

POSTING SAT 13 JUNE 2020 ON OUR SHELL BLOG

Money in the pockets?:

And 8% to 12% currently we don’t even make in our upstream businessBvB… That performance includes the huge over runs on Corrib, Penn Chem, Prelude, multiple other LNG projects, Alaska Fiasco, and many other (not to mention OPL 245).

It is such an embarrassing comparison to ExxonMobil in projects like Liza, which is highly likely to exceed returns Shell is chasing as a utility. Brasil (or Mexico) have the capacity to deliver similar returns to Liza, if there was leadership and strategy for a long term development. 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: Shell weighs sale of $2 billion-plus stake in Queensland LNG facilities

Shell weighs sale of $2 billion-plus stake in Queensland LNG facilities

JUNE 3, 2020

MELBOURNE/SYDNEY (Reuters) – Royal Dutch Shell (RDSa.L) is considering raising more than $2 billion from the sale of a stake in the common facilities at its Queensland Curtis LNG plant in Australia, according to a sale flyer reviewed by Reuters.

“Royal Dutch Shell plc is considering a sale of a 26.25% interest in the Queensland Curtis LNG (QCLNG) Common Facilities – a multibillion dollar investment opportunity,” the sale flyer said. 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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