London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

Shell Canada sees cost advantage in LNG Canada expansion

November 06/2018

MOSCOW (MRC) - An expansion of LNG Canada has a cost advantage over its rivals in the race to build more liquefied natural gas export capacity, but a go-ahead decision on phase two is likely still a few years away, Shell Canada's president said, as per Reuters.

The first phase of the C41 billion (USD31.3 billion) Royal Dutch Shell-led project was given the go-ahead last month, firing up a race among companies eager to be the next to tap into booming Asian demand for the gas that is supercooled into liquid form for export by tanker.

"What's in our favor now is expansions are typically lower capital cost," Michael Crothers, Shell Canada President, told the Reuters Global Commodities Summit. "I think that opens up an even more competitive opportunity for us and the partners."

That expansion cost saving adds onto the project's other advantages, including a relatively short shipping distance to key Asian markets and cheap feed gas. The question of when the second phase, which would double output at the 14 million tonne per annum (mtpa) plant to 28 mtpa, will be approved remains unclear, Crothers said.

"I'm sure Shell leadership would like to see demonstrated performance before we start to consider this too closely. So that's still probably a few years away," he said.

He added an LNG Canada expansion would have to compete with global rivals, including options in the U.S., Africa and Middle East, and would depend on the market for the fuel - though all signs point to sustained Asian demand.

LNG demand has risen sharply in recent years, led by China, gobbling up an anticipated surplus and fanning fears of a shortage by mid-next decade. This has projects around the world scrambling to secure the long-term deals they need to finance multi-billion dollar builds.

LNG Canada is a joint venture between Shell, Malaysia's Petronas, PetroChina Co Ltd, Mitsubishi Corp and Korea Gas Corp.


mrcplast.com
Author:Anna Larionova
Tags:shale gas, Condensate, gas processing, Shell.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe