Business

Shell set to take over QCLNG, third train a possibility

ROYAL Dutch Shell looks set to take control of the QCLNG plant on Curtis Island, Gladstone, after agreeing to take over BG Group in a $90 billion deal.

The QCLNG plant, which began exporting LNG late last year, is a joint venture between BG Group and QGC.

Royal Dutch Shell previously had plans to build a fourth plant on Curtis Island via Arrow Energy, but shelved that proposal last year.

Commentators say the takeover deal is a huge vote of confidence in Queensland's $63 billion LNG export industry.

The deal is one of the energy sector's biggest, and the new company would be valued at about $387 billion.

Brisbane Times reports the two companies confirmed on Wednesday they would push ahead with one of the biggest energy deals in history, and redraw the Australian industry landscape in the process.

>> MORE GLADSTONE NEWS HERE

The deal is expected to deliver $US2.5 billion worth of synergies and a significant proportion of those will be in Australia.

Shell has a large portfolio of coal seam gas through its Arrow Energy joint venture with PetroChina.

The takeover could bring Arrow gas into QCLNG and potentially stoke a third train at the facility.

The ABC reports that if the transaction is approved by regulators and shareholders, the company's chief financial officer Simon Henry said Shell would become the biggest player in the global LNG market, with around twice the sales of its nearest competitors Exxon Mobil and Chevron.

MORE GLADSTONE LNG NEWS:

>> Watch: First LNG ship leaves Gladstone Harbour

>> Video: Second LNG flare lit as GLNG moves forward

>> BG Group boss visits QCLNG plant in Gladstone

"We will become the largest private LNG company in the world, and by a factor of two ... we'll have a leading position in the market for many years to come," he told a press conference in London.

Shell chief Ben van Beurden said the move would mean building a different type of company with a focus on deep water and integrated gas (LNG).

"I would expect us to be the leading LNG company and of course a significantly growing business, so it is only appropriate we pursue growth in this area," he said.

"BG will accelerate Shell's financial growth strategy, particularly in deep water and liquefied natural gas - two of Shell's growth priorities and areas where the company is already one of the industry leaders.

"The addition of BG's competitive natural gas positions makes strategic sense, ahead of the long-term growth in demand we see for this cleaner-burning fuel." 

The deal, if approved, will also see Shell overtake Chevron as Australia's largest LNG producer once the nation's seven projects are complete.

"The combination will add about 25 per cent to Shell's proved oil and gas reserves and 20 per cent to production, and provide Shell with enhanced positions in competitive new oil and gas projects, particularly in Australia LNG and Brazil deep water," the company said.

The proposal means it is likely that Arrow gas will find its way to the QCLNG project.
 

Topics:  bg group curtis island gladstone business lng qclng resources shell



How to do Eat Street the right way

EVERYTHING you need to know to get the most out of your Eat Street experience and to avoid a food coma when you’re only one stall deep.

Don’t go chasing waterfalls…find them on these drives!

The Scenic Rim is just one place nearby that you'll love.

BRISBANE isn’t all bright lights and city slickers.

Science Festival seriously awesome

Don't miss the World Science Festival Brisbane!

CALLING everyone who wants to see something totally cool.

Drink where the cool kids do this summer

There are a bunch of new bars open in Brisbane, make sure you're there!

CHECK out these new funky bars.

Discover Brisbane’s laneway gems

Brisbane's laneways will surprise you.

NOT all of Brisbane City is as it seems…

Top five things to experience this summer in Brisbane

Tangalooma is amazing if you're keen for a dive, kayak or swim.

THIS summer get out and explore your capital city.

Your boots are made for walking these tours

Brisbane Greeters tours are a great way to learn the local history of the city.

YOU don’t need a bike or bus for a seriously good tour of Brisbane.

'Cut in half': Disappointment as Gladstone loses crucial town

CHANGES: What the Gladstone electorate could look like under the proposed changes.

MAJOR town that's just up the road to be cut out of our electorate.

New boss leaves horror years, embattled project

Glen Lewis will start work as managing director for Realm Resources on March 6.

NEW BOSS of major mine looks forward to putting horror years in past

Excitement builds for big, new Tannum village plan

TOUGH SLOG: Gladstone's much-loved seniors are being forced to re-locate, away from Gladstone.

PLAN to plonk new village on vacant block of land gains traction.

Local Partners

Un-American tale makes Lion weakest link in Oscars line-up

PSYCHOLOGY researchers find US films and actors most likely to win accolades at the Oscars.

Living End, Grinspoon stars hit stage for American Idiot

Chris Cheney of The Living End stars in the Australian production of Green Days musical American Idiot at Brisbane's QPAC Theatre.

TAKE a look behind the scenes of Green Day's American Idiot musical

Samuel L Jackson dismisses La La Land ahead of Oscars

Ryan Gosling and Emma Stone in a scene from the movie La La Land.

Hollywood actor and Oscars voter says Denzel should win top gong

Live performance of Sci-fi classic to open Science Festival

Qld Symphony Orchestra perform live to 2001: A Space Odyssey.

Festival will host A Live Presentation of 2001: A Space Odyssey.

Former Family Matters stare accused of child abuse

Reginald VelJohnson, left, and Darius McCrary arrive at the TV Land Awards on Sunday, April 19, 2009 in Universal City, Calif.

Darius McCrary has been accused of child abuse

Bindi Irwin's birthday tribute to her dad

Bindi Irwin

Bindi Irwin has paid tribute to her dad on his 55th birthday

The trick homeowners are using to buy more properties

Chantelle Subritzky leaves her home each week for Airbnb guests.

Queenslanders are going down this path to help pay their mortgages

Stunning home blends South Pacific beauty with Orient style

Immaculate residence with two outdoor living areas

Gladstone's 20 cheapest properties on the market, all under $150K

DIRT CHEAP: 5/239 Sun Valley Rd, Kin Kora is selling for $140,000

PROPERTY sellers drop prices as houses and units sell for bargains.

$140k damage: landlord says property trashed, contaminated

He had what he calls "the tenants from hell"

Submarine, buses and 3000 tyres removed in $100K clean up

The list of things removed from this property is beyond astonishing

Ready to SELL your property?

Post Your Ad Here!