Shell’s Colossal Miscalculation in 2011 of Today’s LNG Price: Largest-Ever $12-$17-Billion “Floating Facility” Shut Down, Months After Shipping First LNG. Done in by Long Price Collapse | Wolf Street

..In 2014, the price of LNG started sinking, and in 2015, it plunged, and those investments became huge money pits – including perhaps the largest of them all, Shell’s floating LNG-factory, the Prelude FLNG, at a length of 1,600 feet, the largest floating facility ever built, and at an undisclosed cost estimated to have been in the range between $12 billion and $17 billion, now languishing off the coast of Australia (the red hull is the Prelude, the smaller ship in front of it is a huge LNG tanker; image by Shell):

In April 2014, the average spot price of LNG at arrival in Japan was $18.30 per million Btu, according to Japan’s Ministry of Economy, Trade, and Industry (METI). This is as far as its data series goes back.

In July 2020, the average spot price of LNG at arrival in Japan was $4.10/mmBtu, according to METI, but that was up from $2.60/mmBtu in May, which had been the low point. July’s average price, despite in increase since May, still represents a 78% collapse from the price in April 2014:

Shell’s Colossal Miscalculation in 2011 of Today’s LNG Price: Largest-Ever $12-$17-Billion “Floating Facility” Shut Down, Months After Shipping First LNG. Done in by Long Price Collapse | Wolf Street

2 thoughts on “Shell’s Colossal Miscalculation in 2011 of Today’s LNG Price: Largest-Ever $12-$17-Billion “Floating Facility” Shut Down, Months After Shipping First LNG. Done in by Long Price Collapse | Wolf Street

  1. Well! SXXt happens. This is a big setback for Shell. but a win for the environment. If they had put their money in sustainable energy the world would be better off. How does one reuse a mistake of this magnitude?
    As for environmental energy. Why can’t the car manufacturers retro fit existing vehicles? rather than contribute to environmental destruction by building new cars. Get the fossil fuel vehicles off our roads sooner.

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