Shell distances itself from growth in natural gas business

By anna smith

Royal Dutch Shell is moving away from growing its liquefied natural gas business, a move that raises new doubts about the future of its proposed LNG Canada project in Kitimat, B.C.

On Tuesday, the company said the pace of new investment in LNG will slow as it moderates growth and prioritises cash flow generation and returns on existing projects.

Shell said while its integrated gas business was previously a “growth priority,” it has now reached a critical mass the February acquisition of gas giant BG Group in February.

Oil and gas analyst Dirk Lever from Altacorp Capital said the announcement doesn’t mean an end to the company’s LNG Canada project.

“They may just kick the can down the road, but it’s not dead”, he commented.

The LNG Canada project would export up to 24 million tonnes of LNG per year. The Prince Rupert project was designed to export up to 21 million tonnes of LNG ever year.

Shell owns a 50 percent stake in the LNG Canada project it is developing with partners Korea Gas Corp., Mitsubishi Corp. and PetroChina Co. Ltd. Shell now owns 100 percent of the Prince Rupert project following the BG merger.

Follow @BizReviewCANADA

Read the June 2016 issue of Business Review USA & Canada magazine

Source: [The Star]


Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI