Impasse deepens over B.C. LNG tax as Shell warns 7% levy not globally competitive

Financial Post | Business

Royal Dutch Shell Plc is leading an industry pushback against the scope of British Columbia’s proposed tax on liquefied natural gas exports, extending a standoff over fiscal terms for the upstart sector.

The B.C government this week announced a two-tier tax structure for the industry as part of the provincial budget. Under the scheme, profits from LNG plants will be taxed at an initial rate of 1.2%, with rates climbing as high as 7% once companies recover capital costs associated with building the multibillion-dollar export terminals.

The B.C. government said the rates are competitive with rival export jurisdictions in Australia and five U.S. states, including Alaska, Texas and Louisiana.

We’ve been clear that the rate needs to be globally competitive if B.C. is to build an LNG industry

But Shell on Wednesday questioned that assessment, deepening an impasse that has delayed final investment decisions and threatened to snuff out a…

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Shell’s Arrow Energy to cut hundreds of CSG jobs in QLD

CELOTTI WORKFORCE

January 20, 2014. The Australian, Kim Christian.

 

 

 

 

 

 

 

 

 

ARROW Energy is planning to cut jobs and reduce costs at its coal seam gas (CSG) project in central Queensland after key shareholder Royal Dutch Shell downgraded its profit forecasts.

Hundreds of jobs are believed to be at risk at Arrow which employs 1200 people.

A spokesman confirmed the company has conducted a review of staffing levels as it cuts costs.

But he was unable to give details of the number of jobs at risk.

“While the company acknowledges this will be a difficult time for employees, it is committed to supporting them through this transition,” the spokesman said.

“The company remains focused on finding additional value and reducing overall costs.”

The spokesman added that Arrow would continue to assess development options, including joint venture opportunities, as it looks to develop its gas reserves.

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Article: Shell raises chemical production capacity by new investments in Singapore

Royal Dutch Shell is making a bold move into Singapore to fill a market need for high- purity ethylene oxide and ethoxylates.

Royal Dutch Shell, the Dutch- based energy giant, announced on Tuesday its new investments in Singapore, in order to “increase production capacity of high- purity ethylene oxide and ethoxylates to meet projected demand in Asia”.

The so-called high-purity ethylene oxide is used in a wide range of household and industrial application. It can process into alcohol ethoxylates, which represent key ingredients for a variety of products, such as detergents and personal care items like shampoo and body wash.

The energy major said the new investments include a high-purity ethylene oxide purification column with an initial capacity of 140,000 tonnes a year and two world-scale ethoxylation units with a combined capacity of 140,000 tonnes annually, as well as some associated facilities.

The new production units will add to Shell’s existing production capacity of high-purity ethylene oxide, which is currently at 65,000 tonnes per year, and alcohol ethoxylates capacity of 40,000 tonnes per year.

Shell didn’t reveal the total investment figure in the press release but said that they will be built over 35,000 square meters of land.

Together with the groundbreaking for these new plants on Tuesday, Shell also began its upgrading work of its polyols production facility here.

“The demand for alcohol ethoxylates in Asia is expected to increase at approximately 6-7 percent annually over the next five years. The key driver for this is the move by consumers from laundry powder and soap bars to liquid detergent and liquid soaps, especially in major markets like China, India and South-east Asia, ” said Graham van’t Hoff, Executive Vice President of Shell Chemicals.

“We are expanding to meet the growing needs of our existing and new customers,” he added.

The full article is visible via the link below – Pankaj Oswal

http://www.globaltimes.cn/content/775492.shtml#.UXCda8qxklA