From The Australian:
ROYAL Dutch Shell is reviewing the ownership structure of the planned $20 billion Arrow coal-seam gas export project in Queensland as cost blowouts continue to plague the sector.
The oil and gas giant has begun talks with third parties to help it develop the project but says it may delay approval as it waits for the overheated construction market to cool.
…It may also be considering combining with one or more of the three LNG plants already in construction on Gladstone’s Curtis Island. These are being built for a combined $70bn by BG Group, Santos-Total-Petronas and Origin Energy-ConocoPhillips.
…At an investor day in New York, Shell oil and gas production chief Andrew Brown said cost pressures in Queensland could delay the timing of a final investment decision (FID) on Arrow.
Uh oh. It will only take one already approved major project to rationalise and the brown will fly. Funding costs will jump, share prices tumble and management panic. Cross your fingers.
