Shell has sold its 6.4% stake in the Wheatstone LNG project currently under construction in Australia and its 8% stake in the Wheatstone-Iago joint venture to the Kuwait Foreign Petroleum Exploration Company (KUPFEC). This divestment is an intent to limit spendings in Australia, which have soared over the last few years, and will avoid Shell to invest further in the US$29bn liquefaction project. The KUPFEC's interest will then raise to 13.4%. Wheatstone LNG will consist of two liquefaction trains with a capacity of 4.45 Mt/year each; the project will be commissioned in 2016-2017.
Shell, which might cut jobs at its Arrow LNG project (50-50 joint venture with PetroChina), has also announced the sale of its Geelong refinery in Victoria. The group is facing high cost pressures in and around Gladstone (central Queensland) where the Arrow LNG project will be located. Shell and PetroChina are believed to wait for economical improvement before the Arrow LNG final investment decision. Arrow LNG will have two liquefaction trains of 4 Mt/year each, that are approved and expected in 2017-2018. Two additional 5 Mt/year trains are under consideration.
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