Shell shelves Arrow LNG

Oil and gas giant Shell said it has shelved the $US 20 billion-plus Arrow LNG project in Australia in the wake of the oil price slump.

We have slowed down on new developments which for example means Arrow greenfield LNG is off the table, and Abadi FLNG and Browse FLNG have been re-phased to optimise the concept by the operator,Shell’s CEO Ben van Beurden said in a presentation for fourth-quarter results on Thursday.

According to van Beurden, Shell is currently prioritising LNG developments in North America and “in that timeframe – LNG Canada and Elba LNG Canada alone is 13 mtpa, and 50% Shell.”

The Arrow LNG project, which Shell was developing with PetroChina, involved a liquefaction facility on Curtis Island able to produce up to 18 mtpa of LNG, and included the phased construction of up to four trains on its Curtis Island site.

Stage 1 included the construction of two trains of around 4 mtpa of LNG each on the Arrow site behind Boatshed Point.

LNG World News Staff; Image: Arrow Energy


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