The Arrow LNG project is still on the cards for Shell’s next wave of investments, but the multinational is keeping quiet about any developments for its future.
Industry experts have described the $15 million project as a “key uncertainty” for Australia’s gas sector, in the March 2014 report from the Bureau of Resources and Energy Economics (BREE).
BREE estimates Australia’s east coast will triple the amount of gas it is producing by mid-2019, by which time all three gas liquification plants on Curtis Island will have been completed.
In FY2013 the eastern states gas market produced 22 million cubic metres of gas, but BREE projected an increase to 61 million cubic metres.
The Arrow Energy LNG project received government approvals in December last year, but was put on hold as Shell delayed all investment decisions due to economic and inflationary risks.
The Gladstone Observer reported a spokesman for Shell would not discuss the company’s position on selling gas to its Curtis Island counterparts in lieu of the major project.
He said the company was “looking for more value in the project” and would consider collaboration if it meant a better deal for shareholders.
Shell is currently building one of the world’s first floating LNG plants in South Korea, the Prelude project.
Prelude will be permanently moored about 200 kilometres off the Western Australian coast for 25 years.
It is about half a kilometre long, will weigh six times as much as an aircraft supercarrier, and will be capable of producing 3.6 million tonnes of LNG per year, as well as condensate and LPG.
Shell posted a December quarter profit of $US2.2 billion, down from $US7.4 billion a year earlier.