Tuesday, November 29

Analysts Back Shell in Queensland LNG Race

IN the race to build multibillion dollar gas export plants in Queensland, the winner hasn't even left the starting blocks.
That’s the view of London-based analysts at Jefferies whose five-day tour of Australia’s big liquefied natural gas developments convinced them Royal Dutch Shell and PetroChina’s slowly-slowly approach to sanctioning their Arrow LNG venture could turn out to be a smart move.

The scale of Australia’s gas investments at over $US180 billion through 2017 is creating bottlenecks in the supply of materials, driving up equipment prices, and worsening a labour shortage as gas developers compete with big mining companies for skills. The spectre of industrial action at LNG projects looms large, as does the risk of project delays.

According to Jefferies, these pressures will be most acute at Curtis Island, near Gladstone in Queensland, with its confined space and limited access.

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The Australian

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