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Shell says may co-operate with Queensland LNG rivals
April 26, 2012 / 10:11 AM / 6 years ago

Shell says may co-operate with Queensland LNG rivals

LONDON, April 26 (Reuters) - Royal Dutch Shell said it was in talks on sharing planned liquefied natural gas facilities with rivals in Queensland, Australia, and that it was open to buying additional gas exploration assets in Mozambique.

Shell leads one of four groups which are working on competing LNG projects around Gladstone in Queensland and analysts have predicted consolidation among the groups, to cut the cost of development which run to many billions of dollars.

Shell Chief Financial Officer Simon Henry said the parties were in talks about co-operation.

“There have been and are ongoing discussions between partners as to whether gas can be potentially taken from one producer and put through others’ facilities,” he told reporters on a call on Thursday.

“We’re open to ideas,” he added.

He added that Shell and its partner, PetroChina, would most likely make a final decision on whether to press ahead with its plan toward end of next year.

He said Shell could follow up its agreed takeover of UK-listed Cove Energy, which operates offshore Mozambique, with additional acquisitions in the area.

Henry said Cove’s Mozambiquan project, which is led by U.S. explorer Anadarko, will take tens of billions of dollars to complete.

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