Shell has decided to delay its final investment decision (FID) for its proposed Lake Charles LNG export project in the United States; the FID was expected in 2016 but worst-than-expected quarterly results and financial charges related to the acquisition of the BG Group prompted the company to postpone further investments.
The Lake Charles LNG project was developed by the BG Group and consists of three 5 Mt/year liquefaction trains. The project was approved by the US Federal Energy Regulatory Commission (FERC) in December 2015.
Earlier in July 2016, the LNG Canada partners (Shell with 50%, PetroChina with 20%, Mitsubishi Corporation with 15% and Kogas with 15%) delayed again a final investment decision (FID) on their 12 Mt/year LNG Canada project that was planned for late 2016.
Shell is carrying out a US$30bn asset divestment programme. The group has already completed (or nearly completed) the sale of US$3bn of assets and is in discussion to divest other assets. In 2016, Shell plans to sell US$6-8bn of assets. The group is also expected to meet its dramatically-cut annual capital investment programme of US$29bn.
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