Shell and partner CNPC of China are taking a relaxed approach to their Australian coalbed methane-backed Arrow LNG export project.
In a results briefing, Shell chief executive Peter Voser (right) said the first phase is likely to be a two-train development producing 8 million tonnes per annum.
Despite being fourth in the sanctions queue on CBM-LNG projects in Queensland, Voser insisted the company is “not in a rush here”.
He said Shell believes that the haste of its competitors will drive up costs.
“I think we are quite happy to go later into front-end engineering and design and then the financial investment decision and be already behind some of the others because we think that gives us a cost advantage,” Voser said.
He added that partner CNPC will give Arrow access to “cheaper China sourcing” of components and services.
Voser highlighted Shell’s final investment decision on its 3.6 million tpa floating liquefaction project Prelude LNG, which was taken during the second quarter.
He said that combined with other interests this will give the company 8.3 million tpa of LNG under construction in Australia to bolster the 20.5 million tpa the company already has on-stream today.
