Shell looking at ways to improve US gas profits
By ALEXIS FLYNN
Royal Dutch Shell is actively looking at ways to improve the profits it gets from US natural gas, including seeking land for potential liquefaction and export terminals.
The Anglo-Dutch energy giant has invested heavily in US shale gas assets, but depressed local gas prices risk driving up the costs of its projects there.
Simon Henry, chief financial officer for the company, said Shell was examining plans to develop the gas into products that are more closely linked to oil prices, such as liquefied natural gas for export and gas-to-liquids technology that turns gas into a transport fuel.
He said Shell was even seeking out land to build possible sites to build the types of facilities needed but cautioned that at a cost of "around $5 billion to $10 billion a project, we have to be selective."
Last week, company CEO Peter Voser warned that shale investment won't be sustained if US natural gas benchmarks stay at their currently depressed levels.
Dow Jones Newswires
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