Asia/Pacific News
Shell CEO Warns of Obstacles to Australian LNG
Peter Voser, CEO of Royal Dutch Shell PLC (Shell), is warning that Australia's natural gas export industry faces challenges from international competitors and from the cost of projects in the country, the Wall Street Journal reports.
"Rising costs have become a significant challenge for companies doing business here," Voser said at an energy industry conference.
He said new supplies from North America, East Africa, and Asia also represent competition for the Australian industry.
Shell is involved in the construction of a liquefied natural gas (LNG) terminal at the port of Gladstone in Queensland, and Voser's comments suggested the possibility that the company might shelve that project, although he also said the company will spend around $30 billion in Australia over the next five years.
The company owns about a quarter of the $50 billion Western Australian Gorgon LNG project, operated by Chevron Corp., which is expected to start operations in 2015.
It is also building the $10 billion-plus Prelude LNG project, which will use a floating, rather than an on-shore, facility for liquefaction.
Shell was also a partner in the $46 billion Browse LNG project, which was shelved earlier this year due to rising costs, and the company has said it will look into alternatives at that site.
