Shell to build LNG plants in U.S., Canada for transport fuel

GEISMAR, La., Tue Mar 5, 2013 — Royal Dutch Shell said it would build two small-scale gas liquefaction units in Louisiana and Ontario as part of an investment plan to unlock value in the use of liquefied natural gas as a transport fuel.

“These two units will form the basis of two new LNG transport corridors in the Great Lakes and Gulf Coast regions,” Shell said in a statement on Tuesday.

Shell said it was also working to use natural gas as a fuel in its own operations, which follows an investment decision in 2011 on a similar corridor in Alberta, Canada.

Shell, which has bet the most heavily of all the top oil firms on a future for cleaner-burning natural gas, said it is using its expertise to make LNG a viable fuel option for the commercial market.

In the Gulf Coast corridor, Shell plans to install the liquefaction unit at its Geismar Chemicals facility to supply LNG along the Mississippi river and intra-coastal waterway and to exploration areas offshore Gulf of Mexico and onshore Texas and Louisiana.

Chesapeake Energy to raise $6.9 billion from asset sales

OKLAHOMA CITY, Okla.,Wed Sep 12, 2012 – Chesapeake Energy Corp said it will sell most of its Permian Basin properties to Royal Dutch Shell Plc nd Chevron Corp. and a majority of its pipeline assets to raise about $6.9 billion in cash.

The company, which has been shedding assets to raise cash to meet an estimated $10 billion funding gap, said it would use the proceeds to repay $4 billion of term loans in the fourth quarter.

Chesapeake has been working to sell the Permian Basin assets since February. The company holds 1.5 million acres in the basin, spread across the western part of Texas and the southeastern part of New Mexico.

Chesapeake said on Wednesday it would sell its assets in the southern Delaware Basin portion of the Permian Basin to a unit of Shell. Its assets in the northern Delaware Basin portion would be sold to Chevron. The company said it would raise about $3.3 billion from sale of the Permian Basin assets.

Chesapeake said it would raise $3 billion from selling substantially its entire pipeline and related assets. This comes after the company said in June it would sell its pipeline assets to Global Infrastructure Partners for more than $4 billion.

U.S. to allow Shell to begin prep work for drilling in Arctic

ANCHORAGE, Alaska/WASHINGTON, Thu Aug 30, 2012 – Royal Dutch Shell will be allowed to begin some “limited” drilling in Alaska’s Chukchi Sea, the U.S. government said on Thursday, a move the company hailed as a step forward in its long-delayed effort to tap Arctic oil.

The U.S. Interior Department said Shell will be permitted to begin preparatory work in the Chukchi, but cannot drill to areas containing oil until the government certifies its oil spill containment system.

Without that containment system, the department has said it will not allow Shell to drill for oil in the Arctic.

“At this point we don’t know what exactly is going to happen with Shell and whether they are going to be able to complete a well in the Arctic this year,” Interior Secretary Ken Salazar told a conference call with reporters.

Shell’s Arctic drilling plans had appeared on track to begin this year but it has run into delays. The company has spent $4.5 billion so far in its effort to explore for oil and gas off Alaska’s coast.

In addition to seeking modifications to its air-quality permits from the U.S. Environmental Protection Agency, Shell is also still working to get its oil-spill containment barge, the Arctic Challenger, approved by the Coast Guard.

Shell’s vice president for Alaska Pete Slaiby said the government’s decision to allow some drilling was “exciting”.

He said that even if Shell’s activities this year were limited to top-hole drilling, that would be an important accomplishment.

“This is really important to begin to establish confidence that we can do this right,” Slaiby told reporters in Anchorage.

“All this work on top holes is clearly going to help us, as well as put real wind in our sails for 2013.”

Facing delays, Shell has asked the government to extend its oil drilling season in the Chukchi beyond the September 24 deadline currently in place. Without an extension, the chances of completing a well this year are slim, Slaiby said.