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Mining.com reported that industry analysts predict that the takeover of BG Group Plc by Royal Dutch Shell Plc will bode well for Shell’s liquefied natural gas project in Kitimat, but not so good for BG’s own LNG proposal for Prince Rupert.
Mining.com reported that industry analysts predict that the takeover of BG Group Plc by Royal Dutch Shell Plc will bode well for Shell’s liquefied natural gas project in Kitimat, but not so good for BG’s own LNG proposal for Prince Rupert.
As quoted in the market news,
Of the 19 LNG proposals in B.C., the $40 billion LNG Canada project proposed by Shell and PetroChina is considered one of the ones more likely to be built.
But analysts say the merger does not bode well for BG Group’s own Prince Rupert LNG project.
Brad Hayes, president of the petroleum consulting firm Petral Robertson Consulting Ltd., stated:
I certainly agree that the deal casts a lot of doubt on the BG project proposal, and I had heard that it was probably not one of the more likely ones to go ahead anyway.