Shell reports drop in earnings on lower prices and trading profits while LNG sales stay above 16 million tonnes
The largest European energy major Shell posted a 47 percent drop in overall quarterly profits, reflecting lower LNG trading and optimisation results and a drop in oil and gas prices as well as refining margins.
Shell reports higher than expected profits underpinned by almost 17 million tonnes of LNG sales
UK major Shell plc reported an increase in net profits for the first three months of the year as liquefied natural gas sales volumes rose by 6 percent on the previous quarter, though were slightly less than the same quarter of 2022.
New York private equity fund Blackstone buys stake in US Elba Island LNG export plant in Georgia
Blackstone Inc., a private equity fund based in New York, has purchased a 49 percent stake in the US Elba Island LNG export plant in Georgia where Shell is the only customers.
Shell reports decline in LNG sales and in overall earnings in lethargic recovery from 2020 oil price crash
Royal Dutch Shell reported a drop in second-quarter liquefied natural gas sales as overall earnings also declined from the first three months of 2021 amid healthy cash flows. The performance was one of recovery from the massive losses posted in 2020 because of write-downs in assets.
US Elba Island LNG export plant informed of inspection by regulators near first anniversary of fire
Southern LNG Company, the operator of the Elba Island LNG export plant near Savannah in Georgia and a subsidiary of pipeline giant Kinder Morgan, is to host a full inspection of the facility by regulators just after the first anniversary of a fire at the new plant that delayed completion.
Shell updates on gas
June 30 (LNGJ) - Royal Dutch Shell said in an update to the second quarter 2020 outlook for its Integrated Gas division that production is expected to be between 880 and 910 thousand barrels of oil equivalent per day and LNG liquefaction volumes are expected to be between 8.1 million tonnes and 8.5 million tonnes.
“Trading and optimisation results are expected to be below average,” said Shell. “As previously communicated, more than 90 percent of our term contracts for LNG sales in 2019 were oil price linked with a price-lag of typically 3-6 months. Consequently, the impact of lower oil prices on LNG margins became more prominent from June onwards,” it added.
Shell outlines level of damage to first-quarter earnings on lower realized oil and LNG prices
Royal Dutch Shell has revised its first-quarter earnings outlook for 2020 because of the oil market slump and expects to take a post-tax hit of between $400 million to $800 million after earlier exiting the US Lake Charles LNG project to reduce investment levels.
Kinder Morgan's Elba Island LNG plant in Georgia suffers further commissioning delays
US pipeline company Kinder Morgan said it was still delaying the start-up of its Elba Island LNG export plant in Georgia after receiving regulatory permission in early March to introduce feed-gas into its systems comprising 10 small-scale liquefaction Trains.
Elba Island is an existing import terminal that has been transformed into an export plant to produce an initial 2.5 million tonnes per annum of LNG.
The Georgia terminal is among three US liquefaction facilities that are expected to begin service in 2019, adding to the country's growing energy export industry.
Kinder had initially expected the first Train to come on stream by the end of March and the remaining Trains following during the year.
However, the project had also been hit by minor construction delays and the original start-up day was gradually pushed back from the end of 2018.
“The start-up of Elba has been delayed due to additional common commissioning issues that are systematically being addressed on the first of the 10 liquefaction units,” said the company.
“We will issue a press release when we have resolved the issues and are in service,” it added. Kinder did not say how long the delay would last.
Kinder’s project near Savannah is utilizing Shell's Movable Modular Liquefaction System. The small-scale liquefaction trains were largely assembled off-site.
Kinder, based in Houston, will have feed-gas needs equivalent to around 350 million cubic feet per day.
Of the three plants set for start-up in 2019, only Sempra Energy’s Cameron LNG facility at Hackberry in Louisiana has shipped its first cargo after a series of delays.
When Elba Island begins commercial operations soon followed by the Freeport plant in Texas, the US will double the number of export plants in operation.
According to the Federal Energy Regulatory Commission, the liquefaction Trains 1-6 at Elba Island are expected to start entering service at one-month intervals.
Elba Island’s Trains 7-10 are then scheduled to come on stream in the third quarter of 2019.
The Georgia project is supported by a 20-year supply contract with Royal Dutch Shell.
The coming on stream of Elba Island on the East Coast would follow the shipping of the first cargo more than a year ago from the Cove Point in Maryland on Chesapeake Bay, operated by Dominion Energy.
The two Cheniere Energy plants on the Gulf Coast at Sabine Pass in Louisiana and Corpus Christi in Texas and Sempra’s Cameron plant give the US a current total of four plants in operation.
US Elba Island plant in Georgia delayed as it vies with Cameron LNG for next exporter start-up
Kinder Morgan, the US pipeline and infrastructure company, has encountered minor issues relating to the commissioning of equipment at the facility near Savannah in the state of Georgia vying to enter the start-up phase ahead of the Cameron LNG plant in Louisiana.
Elba Island is an existing import terminal that has been transformed into an export plant to produce an initial 2.5 million tonnes per annum of LNG from 10 small liquefaction Trains.
Kinder had previously expected the first liquefaction Train to come on stream in April and the remaining Trains following in sequence.
However, the project has been hit by minor construction delays. The start-up had previously been expected by the end of 2018.
According to the Federal Energy Regulatory Commission, the mini liquefaction Trains 1-6 at Elba Island are expected to start entering service at one-month intervals.
Elba Island’s Trains 7-10 are then scheduled to come on stream in the third quarter of 2019.
The 10 units being installed at Elba mark the first time this specific technology is being deployed in the US.
The Elba plant is using Royal Dutch Shell’s Movable Modular Liquefaction System. These small-scale liquefaction Trains are mostly pre-assembled then brought to the site.
“Since this is the first project using this specific configuration of liquefaction technology, we have experienced some minor issues that are being resolved as part of the process,” said Kinder.
The Georgia project is supported by a 20-year supply contract with Shell and is the smallest of the three US plants being completed in 2019. Shell was a stakeholder in the Elba Island plant when it operated as an import terminal.
Start-ups for Elba Island, Sempra Energy’s Cameron LNG in Louisiana and the Freeport plant in Texas will double the number of US LNG export terminals in operation.
The Cameron facility is also set for production, ahead of Freeport, though both have suffered various holds ups and problems in construction.
Kinder and several equity fund partners are also developing the Gulf LNG export project proposed at the site of the existing import terminal at Pascagoula in Mississippi.
Royal Dutch Shell reports higher LNG and gas profits as price increases offset lower sales
Royal Dutch Shell reported 6 percent lower liquefied natural gas volume sales in the first quarter, though profits jumped 17 percent in the Integrated Gas Division because of higher prices and earnings from trading.
