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Thursday, Aug 15
Shell confident its Kitimat costs won't balloon, with help of Asian partners
- While new liquefied natural gas projects have seen their costs spiral out of control in many parts of the world, Royal Dutch Shell (RDS.A, RDS.B) is confident its proposed Kitimat LNG project in British Columbia will meet cost expectations.
- Shell’s confidence stems from its heavyweight Asian consortium partners - Korea Gas, Mitsubishi and PetroChina (PTR) - whose combined clout and reach means supply deals should get done; they're aiming to build an export terminal and ship 24M metric tons/year of natural gas.
- Shell's man in charge of the project is Andy Calitz, who was project director for the Gorgon LNG project in Australia whose costs ballooned to $50B; he says the experience taught him the risks of remote project development.