Shell – the LNG King

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Although it is enormously hard nowadays to acquire operating L.N.G. installations, Royal Dutch Shell recently made lucrative deal with Repsol which puts its assets ahead of Western L.N.G. competitors. The $6 billion deal will amount approximately 30 percent of Shell’s L.N.G. supplies (up to 6.6 million tons of gas) and increase its influence in Canada, Caribbean and South America.

This concludes decreasing Repsol’s financial burden with more than $4 billion in cash and $2 billion in assumed debt, which is crucial for Spaniards after nationalisation of YPF by Argentinian government.

Shell states deal would allow them to add $1 billion net income annually. “Shell’s worldwide L.N.G. supply position and customer base means we are uniquely positioned to add value to Repsol’s L.N.G. portfolio” Peter Voser, Shell’s chief executive, said in a statement.

More information at:
NYTimes
Bloomberg

Image: Canaport LNG

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Gordon Wasilewski

BSc in Petroleum Engineering student at AGH University of Science and Technology. YoungPetro Editor

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