Shell And PetroChina To Develop Phase 2 Of Surat Gas Project: Details
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 12 2024
0mins
Source: Benzinga
Arrow Energy's Surat Gas Project: Shell and PetroChina's joint venture, Arrow Energy, is set to develop Phase 2 of the Surat Gas Project in Queensland, Australia, aiming for peak production of 22,400 barrels of oil equivalent per day by 2026 to supply Shell's QCLNG facility.
Shell's Financial Performance: Shell's stock has increased by approximately 16% over the past year, closing at $71.88, while the company continues to manage operational costs related to its South African refinery sale.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 78.220
Low
41.75
Averages
74.27
High
91.00
Current: 78.220
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Operational Capacity Overview: Sprng Energy boasts an operational capacity of 2,300 MWp and a contracted total capacity of 5,026 MWp, indicating its potential in the Indian renewable energy market while providing a significant asset base for Shell's long-term strategy.
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- Capital Utilization Strategy: Sawan emphasized that Shell does not need to leverage its own capital for U.S. LNG projects due to the availability of abundant low-cost funding for infrastructure, which helps mitigate financial risks and optimize capital allocation.
- LNG Market Management: As one of the largest offtakers of U.S. LNG, Shell effectively manages price exposure through customer contracts indexed to Henry Hub natural gas prices, allowing the company to capture attractive value in the LNG chain without tying up significant capital.
See More
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See More
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- LNG Project Progress: ConocoPhillips highlighted advancements in liquefied natural gas (LNG) initiatives, including developments in Qatar and the Port Arthur LNG project, indicating a strategic pivot towards global gas markets that is expected to positively influence future earnings.
- ETF Investment Trends: Many flagship energy funds are heavily weighted towards large integrated producers, while globally focused products like the iShares Global Energy ETF (NYSE:IXC) include international LNG leaders such as Shell, providing investors with indirect exposure to the expanding global gas trade.
- Stable Shareholder Returns: Despite earnings pressures, shareholder payouts remain robust across the energy sector, with dividends and share repurchases by large producers continuing to enhance the yield profile of energy ETFs, indicating a transition in the sector rather than deterioration.
See More
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- Declining Reserve Life: Shell's reserve life decreased from 8.9 years in 2024 to 7.8 years, primarily due to asset sales in Nigeria and oil sands, leading analysts to anticipate increased scrutiny regarding Shell's M&A reserve replacement strategy.
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