Shell Working to Turn Around Troubled Australian
Undaunted by hefty writedowns on its Australian gas assets, Royal Dutch Shell sees its liquefied natural gas business and "new energy" acquisitions Down Under as core to its long term plans, the Australian unit's chairman said on Tuesday.
As Europe’s biggest oil company aims for net-zero emissions from its operations by 2050 and plans a major restructuring, Shell still sees gas as a crucial part of the puzzle, with around a quarter of its gas assets in Australia.In July, Shell booked $11 billion in writedowns on its gas business, mostly on its Australian Prelude floating LNG (liquefied natural gas) and QGC business, after cutting its long-term oil and gas price outlook.
QGC, which Shell acquired with its $54 billion takeover of BG Group in 2016, produces gas in the northeastern state of Queensland and runs the Queensland Curtis LNG plant, the biggest contributor to Shell’s 35.6 million tonnes of LNG output in 2019.
“We look at all of our assets in Australia as an important part of our portfolio. My job is to make sure that we continue to add value to those assets and we do that together with our partners,” Shell Australia Chair Tony Nunan said.
He declined to say how the Australian operations might be affected by Shell’s restructuring plan.
The company has been plagued by problems with the $17 billion Prelude FLNG project - the world’s biggest floating vessel and one of just [three] floating LNG projects in the world.
Prelude shipped its first cargo last year more than two years be....