Shell May Face Pressure from Qatar to Ship LNG to More Profitable Terminal
Qatar Petroleum may pressure Shell to ship LNG supplies from its 1.0 Bcf/d Qatargas 4 liquefaction facility to a more profitable North American LNG terminal than the Elba Island LNG terminal, where Shell had initially planned to transport the supply, according to Qatari officials who spoke with Platts LNG Daily [subscription required] at Monday’s U.S.-Arab Economic Forum in Houston. Among the potential alternatives in the northeast are Cove Point LNG, where Shell currently has capacity, and Shell’s proposed Broadwater LNG, which is targeted to commence service the same year as Qatargas 4. Earlier this month, ConocoPhillips agreed to send its Qatari LNG supply to the Golden Pass LNG terminal in Sabine, Texas, instead of the ConocoPhillips-financed Freeport LNG terminal in Freeport, Texas, after facing similar pressure from Qatar Petroleum.