Shell suspends work on Canadian gas for transport facility

Posted by Joseph Keefe
Friday, July 18, 2014

Royal Dutch Shell has suspended development of a liquefaction unit at Canada's Jumping Pound facility, which was to be used to develop the emerging gas for transport market.

Gas liquefaction is increasingly being produced for use in transportation of large road vehicles, in trains, and as a shipping fuel.

"We believe LNG (liquefied natural gas) in transport is a considerable opportunity for Shell, but it is an emerging market and we must have a balanced approach to its development, (so) we have suspended development of the liquefaction unit at the Jumping Pound facility," a Shell spokseman said on Friday.

Shell is the major owner of the Jumping Pound complex in southern Alberta, Canada, which has produced natural gas since 1951 and has an overall production average of 300 million cubic feet per day.

Shell said it was continuing work in the Canadian Green Corridor project and the retail LNG programme with Shell Flying J in Canada.

"This as another sign that the new CEO (Ben van Beurden) is applying a greater degree of discipline in allocating capital than was previously the case and is actively streamlining the 'options' in the portfolio which are to be pursued," Deutsche Bank said in a note.

The shale gas production boom has pulled down natural gas prices in North America, while at the same time new maritime environemntal environmental laws are raising the cost of oil in the shipping sector, making LNG competitive with oil in transport.

However, development costs remain high. "This means making tough choices around the projects we develop in order redeploy our resources, focus our efforts and our capital to create the greatest value for our business," Shell said.

Although shipping analysts say that the use of LNG to power ships is expected to dramatically increase by 2020, they also point to high development and maintenance costs as factors that are scaring off investors.

"Based on current investment levels and prices, retrofitting a vessel's engine to burn LNG produces a payback period longer than a vessel's asset life. In addition, availability of LNG and methanol as a bunker fuel remains scarce and the infrastructure simply isn't in place yet for bulk trades," Ship broker ACM said in a report.


Reporting by Henning Gloystein, Ron Bousso and Jonathan Saul

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

PALFINGER Plans to Acquire Harding Group

The PALFINGER Group announced it intends to acquire 100 percent of the shares in Herkules Harding Holding AS and thus, the globally operating Harding Group, suppliers

Winners of Ferry Design Contest Selected

Winners of International Student Design Competition for a Safe Affordable Ferry to be revealed at the Ferry Safety and Technology Conference   Dr. Roberta Weisbrod,

Maritime Consolidation: Palfinger Aims to Acquire Harding

As maritime markets continue to struggle, merger and acquisition activity should heat up. Today, Austria's Palfinger Group announced that it intends to acquire

Tanker Trends

TORM CFO Zacho Resigns

Mads Peter Zacho, Chief Financial Offer at TORM, has resigned to become Chief Executive Officer at J. Lauritzen A/S. Mads has been with TORM since 2013 and will

Alfa Laval PureNOx Prime Ordered for Five VLECs

Alfa Laval’s new PureNOx Prime solution for water treatment in Exhaust Gas Recirculation (EGR), will be part of EGR systems on five very large ethane carriers

NASSCO Delivers Second ECO Tanker to APT

On Thursday, May 19, shipbuilders at General Dynamics NASSCO delivered the Magnolia State to longtime customer American Petroleum Tankers (APT). The ECO Class tanker

Finance

DP World Launches $1.2 bln Sukuk Issue to Cover Tender

Dubai-based ports operator DP World launched a seven-year $1.2 billion sukuk issue on Tuesday, a document from lead managers showed.   The issue, structured to

Baltic Index Falls on Weaker Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday as demand for larger vessel segments declined.

China Shipbuilding Plans Major Restructuring

State-owned China Shipbuilding Industry Corp (CSIC) is undertaking a major restructuring as it grapples with an industry downturn, and it will be the largest restructuring

Environmental

Design Concept: Zero Emissions Cargo Ship

The designs for a multi access zero emissions cargo ship will be unveiled at the 5th Natural Propulsion Seminar in Wageningen, Netherlands, on Tuesday, May 24. The

First Cruise Company Fined under Australia’s New Fuel Rules

Australia’s NSW Environment Protection Authority (EPA) has fined Carnival PLC $15,000 after one of its P&O Cruises ships, the Pacific Jewel, breached new low sulfur fuel regulations in Sydney Harbour.

HUMMEL LNG Hybrid Barge Begins Second Season

For over one year the HUMMEL has been contributing to improved air quality at the port of Hamburg. Becker Marine Systems’ LNG Hybrid Barge will also be supplying

Fuels & Lubes

ABB Saves 700,000 tons Fuel for Marine Vessels

ABB’s environmental friendly Azipod propulsion system brings greater fuel efficiency to diverse shipping segments ABB today announced the total fuel savings

First Cruise Company Fined under Australia’s New Fuel Rules

Australia’s NSW Environment Protection Authority (EPA) has fined Carnival PLC $15,000 after one of its P&O Cruises ships, the Pacific Jewel, breached new low sulfur fuel regulations in Sydney Harbour.

HUMMEL LNG Hybrid Barge Begins Second Season

For over one year the HUMMEL has been contributing to improved air quality at the port of Hamburg. Becker Marine Systems’ LNG Hybrid Barge will also be supplying

LNG

DSME, Sovcomflot Delay Delivery of First Arctic LNG carrier

South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) and Sovcomflot have agreed to delay a liquefied natural gas carrier being built for the Yamal LNG project in Russia.

HUMMEL LNG Hybrid Barge Begins Second Season

For over one year the HUMMEL has been contributing to improved air quality at the port of Hamburg. Becker Marine Systems’ LNG Hybrid Barge will also be supplying

France's CGT Will Block Elengy's LNG Terminals

France's hardline CGT union said on Monday that workers at Elengy, which operates three liquefied natural gas (LNG) terminals in France, will go on strike from midnight until May 26 midnight included.

News

PALFINGER Plans to Acquire Harding Group

The PALFINGER Group announced it intends to acquire 100 percent of the shares in Herkules Harding Holding AS and thus, the globally operating Harding Group, suppliers

Winners of Ferry Design Contest Selected

Winners of International Student Design Competition for a Safe Affordable Ferry to be revealed at the Ferry Safety and Technology Conference   Dr. Roberta Weisbrod,

Maritime Consolidation: Palfinger Aims to Acquire Harding

As maritime markets continue to struggle, merger and acquisition activity should heat up. Today, Austria's Palfinger Group announced that it intends to acquire

People in the News

Glosten Promotes Lamkin to Senior Marine Consultant

Seattle-based naval architecture and marine engineering consultancy Glosten has promoted Bradley G. Lamkin, PE to Senior Marine Consultant. As a Senior Marine Consultant

Maritime Future Summit: Digital Shipping

Autonomous ships, smart on-board systems: At the Maritime Future Summit on September 5, industry leaders will discuss the future of shipping. For the first time

TORM CFO Zacho Resigns

Mads Peter Zacho, Chief Financial Offer at TORM, has resigned to become Chief Executive Officer at J. Lauritzen A/S. Mads has been with TORM since 2013 and will

Logistics

New Call at Port Kelang on CMA CGM’s REX 2

CMA CGM has introduced a new westbound call at Port Kelang on its REX 2 service connecting Asia with Red Sea.   CMA CGM has decided to replace its REX2 westbound Singapore call with Port Kelang.

Baltic Index Falls on Weaker Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday as demand for larger vessel segments declined.

Hapag-Lloyd Pushes Back AGM on Merger Talks

Hapag-Lloyd said it had decided to postpone its annual general meeting scheduled for June 1, 2016 due to ongoing merger talks between German container shipping

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1690 sec (6 req/sec)