Shell’s $12 Billion LNG Experiment Becomes A Big Headache

June 23, 2020/in /by Rudolf Huber

I hate to say this as I rather admire Shell for its balls. This project was always on the very ballsy side. Even without COVID Prelude was soaked in red ink. Yes, we never got figures from Shell and for good reason. But we have pretty good estimates and they are not pretty. Prelude would need the mother of all market reversals. Beyond mother even. It would need LNG prices to never get lower than 20 USD/MMBtu for decades to have a realistic hope to recover the investment. What a shame – because I like technology marvels such as Prelude.

The world’s biggest ship is on the way to becoming one of the oil industry’s biggest bloopers.

Forbes

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