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Released July 01, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Amid news that Royal Dutch Shell plc (Shell) (NYSE:RDS.A) (The Hague, Netherlands) plans to write down the value of its assets by $15 billion to $22 billion for the second quarter, Industrial Info is tracking more than $87 billion in project activity by the energy giant.
Click on the image at right for a graph showing Shell's project activity by industry.
Shell reported on Tuesday the impact of COVID-19 and low energy commodity prices have prompted it to revise its long-term commodity price and margin outlook, which is expected to result in non-cash impairments in its second-quarter 2020 results. The expected post-tax impairment charges range from $15 billion to $22 billion.
The expected charges include $8 billion to $9 billion worth of integrated gas segment charges, primarily in Australia, including a partial impairment of the QCG liquefied natural gas (LNG) operation and the Prelude floating LNG facility. Impairment charges also include $4 billion to $6 billion tied to its upstream segment, largely in Brazil and North America shales; and $3 billion to $7 billion across its refining portfolio.
The updates to Shell's refining asset valuation reflects its strategy to decarbonize energy product mix, the company said.
Of the $87 billion in Shell project activity being tracked by Industrial Info, more than $27 billion worth has been identified as impacted by COVID-19. This includes some of Shell's larger projects, such as the planned LNG Canada 14 million-ton-per-year LNG production and export facility in Kitimat, British, Columbia, where non-essential work was paused. The facility is expected to begin production in 2024. For more information, see Industrial Info's project report.
Shell's planned 1.5 million-ton-per-year ethylene plant in Monaca, Pennsylvania, also is facing some delays after construction activity was suspended in March in response to the pandemic. Limited construction has since resumed. Project completion is planned for mid-2021. The ethylene plant is one of several units, including three polyethylene units, that are planned as part Shell's Pennsylvania Chemical Project. Click here for a list.
One of larger projects by Shell that has not reported an impact by COVID-19 is the Vito Offshore Oil and Natural Gas Production Platform in the Gulf of Mexico. In water depths of more than 4,000 feet, the planned four-column semisubmersible, single-train platform would have a throughput capacity of 100,000 barrels per day and 100 million standard cubic feet per day of natural gas from the Vito field, which contains up to 300 million barrels of oil equivalent. The project's completion is planned for mid-2021. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Shell reported on Tuesday the impact of COVID-19 and low energy commodity prices have prompted it to revise its long-term commodity price and margin outlook, which is expected to result in non-cash impairments in its second-quarter 2020 results. The expected post-tax impairment charges range from $15 billion to $22 billion.
The expected charges include $8 billion to $9 billion worth of integrated gas segment charges, primarily in Australia, including a partial impairment of the QCG liquefied natural gas (LNG) operation and the Prelude floating LNG facility. Impairment charges also include $4 billion to $6 billion tied to its upstream segment, largely in Brazil and North America shales; and $3 billion to $7 billion across its refining portfolio.
The updates to Shell's refining asset valuation reflects its strategy to decarbonize energy product mix, the company said.
Of the $87 billion in Shell project activity being tracked by Industrial Info, more than $27 billion worth has been identified as impacted by COVID-19. This includes some of Shell's larger projects, such as the planned LNG Canada 14 million-ton-per-year LNG production and export facility in Kitimat, British, Columbia, where non-essential work was paused. The facility is expected to begin production in 2024. For more information, see Industrial Info's project report.
Shell's planned 1.5 million-ton-per-year ethylene plant in Monaca, Pennsylvania, also is facing some delays after construction activity was suspended in March in response to the pandemic. Limited construction has since resumed. Project completion is planned for mid-2021. The ethylene plant is one of several units, including three polyethylene units, that are planned as part Shell's Pennsylvania Chemical Project. Click here for a list.
One of larger projects by Shell that has not reported an impact by COVID-19 is the Vito Offshore Oil and Natural Gas Production Platform in the Gulf of Mexico. In water depths of more than 4,000 feet, the planned four-column semisubmersible, single-train platform would have a throughput capacity of 100,000 barrels per day and 100 million standard cubic feet per day of natural gas from the Vito field, which contains up to 300 million barrels of oil equivalent. The project's completion is planned for mid-2021. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
