Only a fraction of big gas export projects will be built – Shell

Only a fraction of the natural gas export projects being developed around the globe will become reality as high costs and weakening gas prices torpedo those that until recently promised huge returns on investment.Large natural gas field discoveries on and offshore have prompted several countries to plan liquefied natural gas LNG export projects, including in North America, Australia, East Africa and the east Mediterranean.But high development costs and low profit margins in the gas sector mean most of the projects will fail, Royal Dutch Shell’s director of projects and technology told Reuters in an interview.”There is always so much talk about these big LNG projects around the world, but only a small fraction of them will get built,” said Matthias Bichsel, who is also a member of Shell’s Executive Committee.”Costs in the oil and gas sector are still on the rise and outpacing inflation, and gas projects are extremely price-sensitive because the margins are so thin,” he added.

via Only a fraction of big gas export projects will be built – Shell | Reuters.

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