Royal Dutch/Shell Group is studying prospects for a strategic move into electricity generation projects around the world as a way of cashing in on sizable unused gas discoveries.
Royal Dutch/Shell Chairman Cor Herkstroter said his company will study a number of potential gas-fired power generation schemes the next 5 years and has a fund of $10 billion available for all investments.
Countries targeted
A Shell official told OGJ the company first will look into prospects for gas-fired electric power plants in three countries but that each project is at an early stage.
In the Philippines, Shell and Occidental Petroleum Corp. have made the large Malampaya and Camago gas discoveries, but there is as yet no significant market for natural gas in the country.
British Gas plc is considering taking some Malampaya/Camago gas from Shell and Oxy (OGJ, Oct. 10, 1994, p. 38). The official said Shell is also talking to the Philippine government about converting an old nuclear power plant to run on gas from the fields.
In Turkey, the official said Shell has approached the energy ministry with a view to conducting a market study into viability of building a liquefied natural gas import terminal and gas-fired power plant.
In Peru, Shell has found substantial gas reserves in Camisea, said the official, but the company has not finalized a market for the gas (OGJ, Nov. 18, 1996, p. 16).
The official said Shell and partner Mobil Corp. are studying possibilities to use Camisea gas either to sell to other companies for power generation or to burn in their own power plant.
The company expects a total 1 million MW of electric generating capacity to be built around the world the next 10 years at a cost of $700 billion.
The official said Shell is studying prospects to build power plants in areas of the world where it has surplus gas and where there are electricity shortages.
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