Shell Cancels FLNG Order

flng

By MarEx 2016-04-30 17:22:33

Samsung Heavy Industries has revealed that Shell cancelled a multi-billion order for three floating LNG (FLNG) units on Thurday. 

The $4.7 billion order was placed in June last year with an anticipated delivery time of up to 2023. The order included was made as a result of the Woodside-led Browse FLNG project in Australia which was cancelled earlier this year due to low oil and gas prices.
 
The development concept called for three FLNG units using Shell’s technology to develop the Brecknock, Calliance and Torosa fields located approximately 425 kilometers north of Broome in Western Australia. The three fields are estimated to contain gross contingent resources of 15.4 Tcf of dry gas and 453 million barrels of condensate.

Shell is also expected to cut around 2,800 jobs worldwide following its takeover of BG Group. The majority of Australian job losses are expected to come from corporate head offices, but an exact number has not yet been revealed.

However, Shell maintains growth plans in Australia with its Prelude FLNG project off north Western Australia and QGC's Charlie coal seam gas expansion in Queensland.

Shell recently reported a 44 percent fall in fourth-quarter earnings.