Shell reports delays for QatarGas 4 LNG project

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Nov. 25 -- Royal Dutch Shell PLC said it has delayed until late 2010 the start-up of the $8 billion Qatargas 4 LNG project, with the project’s first cargo possibly pushed into 2011.

“We had been planning for a start-up in early 2010 but now we expect that to come in late 2010," said a Shell spokeswoman, who added that the slippage represented a delay of 10 months.

The spokeswoman explained: “There have been some well-publicized schedule issues for the industry with several LNG projects for different consortiums under construction at the same time. Delays to competitors’ LNG projects have had a knock-on effect on Qatargas 4 timing…this is outside of our control…so a minor delay but a good performance overall.”

The spokeswoman did not say when the first cargoes would load, but Shell said ramp-up of the project could continue into 2011, suggesting the possibility that the facility may not be ready to load ships until then.

Further delays are possible, with industry analysts at Waterborne LNG saying they expect first cargoes in mid-2011.

Analyst IHS Global Insight said, “Shell’s revelation was widely expected in the markets, with several indications of significant project slippage over the past few months.”

“Nevertheless,” IHS Global Insight said, “this does not look too good for Shell from a project delivery and management point of view.”

Meanwhile, Qatargas Transport Co. (Nakilat) and Qatargas have taken delivery from the Samsung Heavy Industries’ shipyard on South Korea’s Gejoe Island of the 266,000 cu m MT Shagra.

The new Q-Max LNG carrier will be chartered on a long-term contract to QatarGas 4 and used to ship LNG primarily to North America and China.

Qatargas 4 is designed to convert 1.4 bcfd of gas into 7.8 million tonnes/year of LNG and 70,000 boe/d of NGLs. Shell has a 30% stake in Qatargas 4, with partner Qatar Petroleum, under a tax-and-royalty structure.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Shell cancels Arrow LNG project

01/30/2015

Royal Dutch Shell PLC has abandoned its plans for what would have been a fourth coal seam gas-LNG project at Gladstone in Queensland.

DOE could meet 45-day LNG export decision deadline, Senate panel told

01/29/2015 The US Department of Energy would have no trouble meeting a 45-day deadline to reach a national interest determination for proposed LNG export faci...

Douglas Channel LNG moves toward 2018 startup

01/29/2015 Exmar NV, EDF Trading, and AIJVLP, a joint venture of AltaGas Ltd. and Idemitsu Kosan Co. Ltd., have taken full ownership of the 550,000 tonne/year...

Mitsui charters two more LNG ships for Cameron export project

01/29/2015 Mitsui & Co., Ltd., Tokyo, reports contracts for chartering two new ships to transport LNG to Japan from the Cameron LNG export project in Loui...

US House approves bill aimed at increasing LNG exports

01/28/2015 The US House of Representatives passed a bill aimed at increasing US LNG exports by requiring the Department of Energy to determine whether a proje...

Americans warm up to gas

01/26/2015 As you pick up the latest edition of OGJ after another volatile day in oil and gas, collapse into your favorite chair that's stationed next to your...

Gazprom’s Baltic LNG project to be built in Ust-Luga

01/23/2015 OAO Gazprom has determined that its 10-million-ton Baltic LNG plant will be built near the seaport of Ust-Luga, Leningrad Oblast, Russia. The proje...

Gorgon LNG project signs LNG supply deal with SK Group

01/21/2015 The Chevron Australia-led Gorgon LNG project offshore Western Australia has signed a binding sales and purchase agreement to supply 4.15 million to...

Magnolia LNG signs MOU for fourth train

01/19/2015 Magnolia LNG LLC (MLNG) signed a memorandum of understanding with Kellogg Brown & Root LLC, a wholly owned subsidiary of KBR Inc. (KBR), and SK...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected