Tuesday, July 31

Shell flags gas project delays because of cost pressures



THE world's biggest oil company, Royal Dutch Shell, has warned it may delay some of its $17 billion planned investment in Australian liquefied natural gas projects as construction costs soar and rival nations push for assets to be rapidly developed.
Shell chief executive Peter Voser said cost pressures in Australia were a growing problem and he would not be pushed into the "wrong development at the wrong time".

Shell's major Australian assets include stakes in the Arrow coal-seam gas project in Queensland and the Browse and Sunrise LNG joint ventures operated by Woodside Petroleum.

"Australia is a key component of our growth but we will not overdo it and perhaps not get the right profitability out of it," Mr Voser said when asked on an investor call on Thursday whether Shell's investment pipeline was too weighted towards Australia.

Mr Voser's comments come amid analyst speculation Shell wants to diversify away from Australia where the company also has a 24 per cent stake in Woodside.

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The Australian (July 28)

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