Shell's Bold Play- Prelude LNG Revamp Trimmed To Meet Winter Demand Surge: Report
Portfolio Pulse from Nabaparna Bhattacharya
Shell PLC (NYSE:SHEL) has reportedly considered temporarily halting operations at its Prelude floating LNG production platform offshore Australia for maintenance works and repairs. The maintenance schedule will last two months, a shorter period than the initially planned one-year, to capture strong industry gas demand. This decision will allow the plant to benefit from the winter demand in the northern hemisphere, including China and Europe. However, the plant may continue encountering operational issues due to the 'quick fix'.
September 07, 2023 | 11:46 am
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Shell's decision to shorten the maintenance schedule at its Prelude LNG platform may allow it to benefit from the winter demand surge. However, the 'quick fix' approach could lead to continued operational issues.
Shell's decision to shorten the maintenance schedule at its Prelude LNG platform is a strategic move to capture the strong industry gas demand, especially during the winter season in the northern hemisphere. This could potentially boost its revenues in the short term. However, the 'quick fix' approach could lead to continued operational issues, which may negatively impact its production and operational efficiency. Therefore, the short-term impact on Shell's stock is neutral.
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