Interesting article in today's Australian quoting Shell Australia's Chairman....
Two salient statements in this article are:
1. "The way I see it, it's unlikely that developments will occur in a fragmented fashion," Mr Caplan said.
"You will ultimately need to have a world-scale resource moving to a world-scale plant -- If you don't start that way then something will ultimately have to happen to get us there."
2. "We're in discussions with the authorities, with Arrow and with others on ways of monetising (the gas
Full article is included below...
Shell calls for consolidation of Gladstone's resourcesFont Size: Decrease Increase Print Page: Print Matt Chambers |
May 06, 2009
Article from: The Australian
ROYAL Dutch Shell, which has the least-established of Gladstone's four planned multi-billion-dollar gas export plants, has signalled it is keen to take part in consolidation of the region's gas resources.
Speaking after a lunch in Melbourne yesterday, Shell Australia chairman Russell Caplan acknowledged the company would have to step up its presence in the region if it was to stay in the race to turn coal seam gas into liquefied natural gas.
"The way I see it, it's unlikely that developments will occur in a fragmented fashion," Mr Caplan said.
"You will ultimately need to have a world-scale resource moving to a world-scale plant -- If you don't start that way then something will ultimately have to happen to get us there."
Shell has a site to build a multi-train LNG plant on Curtis Island off the coast of Gladstone but is well behind rivals BG Group, Origin and Santos when it comes to reserves.
Its only reserves are through a 30 per cent stake in Arrow Energy's reserves, which are not seen as big enough to support a major plant.
"We're in discussions with the authorities, with Arrow and with others on ways of monetising (the gas)," Mr Caplan said. Santos and Origin have both said they are open to consolidation of resources, while BG is believed to be open to the concept.
Mr Caplan would not discuss reports that Shell and Woodside were in talks about selling the latter's stake in the Sunrise LNG project in the Timor Sea.
However, a spokesman for Woodside denied yesterday that the company was in talks with anyone over its "33.44 stake in the Sunrise LNG development". Turning to Shell's Australian refining business, Mr Caplan said he hoped the Clyde refinery in Sydney, which was shut down late last year for a major overhaul, would restart by July.
Shell has announced it would exit its refining business in New Zealand, prompting Caltex to last month speculate Australian refineries could come up for sale.
Mr Caplan said Shell would continue to look at its position in Australian refining and that any new investment required in plant would trigger a review of its stance, as it had in the past.
He said major investments would be necessary in the next five years.
Mr Caplan said progress was being made on the Prelude floating LNG project planned for the Browse Basin offshore Western Australia, but would not give a timetable for the next step.
AOE Price at posting:
$3.52 Sentiment: LT Buy Disclosure: Held
