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Shell confirms Arrow LNG won't be approved this year

SHELL has confirmed it is unlikely to approve development of the $10 billion Arrow LNG project this year, but that it remains in the pipeline for the Anglo-Dutch major.

Having already cut back on Arrow Energy upstream staff last month, the multi-national corporation confirmed to shareholders and analysts on Thursday night that it was unlikely any big announcements would be made in the region this year.

"We recently… postponed the final investment decision on the Arrow LNG project in Australia. We didn't like the economics and inflation risks on these proposals," new chief executive Ben van Beurden said.

"We are not expecting any major financial investment decisions in Asia Pacific LNG in 2014."

Arrow LNG was originally due to make a final investment decision on the project late last year, but delayed it.

News of a further delay demonstrates that Shell views the Arrow LNG as a non-core project, although it said that it was still in the pipeline as a future project.

"Shell's focus in LNG is to…be capital efficient in progressing the next wave of LNG options - Abadi, Canada LNG, Browse, and Arrow," Mr van Beurden said.

The Arrow LNG project is a 50-50 joint venture between Shell and Chinese major PetroChina.
 

Topics:  arrow energy curtis island gas gladstone lng resources shell



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