Tag Archives: 钦州桑拿

Shell’s potential acquisition of BG adds to LNG uncertainty in B.C.

first_imgBG – worth $46 billion – posted a record $5 billion loss in the fourth quarter, citing the drop in commodity prices and a reduction in its Australian assets’ value. Shell, whose market value is $202 billion, posted a decline of its shares by 5.5 per cent in the past year – the equivalent of 21.6 billion in cash and near-cash items.BG shares fell 20 per cent in the past year.All of this uncertainly is contributing to more doubt surrounding both companies’ proposed LNG terminals on B.C.’s coast. If the acquisition is successful, the question is raised; will Shell go ahead with both projects, cancel one or perhaps cancel both.- Advertisement -Shell estimates the cost to construct its proposed terminal in Kitimat is $40 billion – with 50 per cent ownership through its subsidiary Shell Canada Energy. BG has slowed work on its proposed Prince Rupert terminal – citing 2017 as the earliest year for a final investment decision.Moody’s Investors Service Inc. says “the vast majority” of B.C.’s LNG projects face cancellation.Shell went on record today to say the deal would enhance the prospect for new projects – particularly in Australia and Brazil. Shell’s worldwide production fell to the equivalent of 3.08 million barrels a day in 2014 – the lowest in at least 17 years.Advertisement Last month, head of BG Canadian operations Madeline Whitaker left to fill another poison in the company and was not replaced – adding to the uncertainty of their operations in B.C.BG has released a statement saying Shell will need to make a decision one way or another by May 5, 2015 the latest.Follow this link to read both Globe and Mail reports.last_img read more